• Kraken will cease its operations in Japan and deregister from the Financial Services Agency (JFSA) as of January 31, 2023.
• All affected clients have until Jan. 31 to withdraw their fiat and crypto holdings, the announcement adds, noting that deposit functionality will be removed on Jan. 9.
• The crypto market has suffered significantly this year, with bitcoin falling more than 65% year-to-date.
Kraken, one of the world’s leading cryptocurrency exchanges, has decided to shut down services in Japan due to the current Japanese market conditions and a weak global crypto market. According to the company, the resources needed for further growth in Japan are no longer justified.
The decision to exit the Japanese crypto market is part of the company’s efforts to prioritize resources and investments in areas that align with the company’s strategy and will best position Kraken for long-term success. Kraken has informed all affected clients that they have until January 31st to withdraw their fiat and crypto holdings, and that deposit functionality will be removed on January 9th. The company is also fully funded to ensure all affected clients can withdraw their assets in a timely manner.
The global crypto market has been in a state of flux this year, with Bitcoin falling more than 65% year-to-date. This has had a knock-on effect on many cryptocurrency companies, with several filing for bankruptcy, including FTX, Three Arrows Capital (3AC), Voyager Digital, and others. Other exchanges have also had to make tough decisions, with Kraken being the latest to make the decision to exit the Japanese market.
Kraken’s exit from Japan is yet another sign of the instability of the crypto market and the need for companies to carefully plan their strategies in order to ensure long-term success. It is also a reminder of the importance of diversifying investments and not putting all one’s eggs in one basket. With the crypto market in a state of flux, investors must be vigilant and ensure that their crypto portfolios are well-diversified to minimize losses.