• Kraken, a global cryptocurrency exchange, has decided to cease operations in Japan and deregister from the Financial Services Agency by the end of January.
• The decision was made due to current market conditions in Japan and a weak crypto market globally.
• Affected clients will be able to withdraw their funds from the exchange by Jan. 31 at the latest.
Kraken, one of the world’s largest cryptocurrency exchanges, has announced that it will be pulling its operations in Japan and deregistering from the Financial Services Agency as a crypto asset exchange operator by Jan. 31, 2023. This move comes in response to the current market conditions in Japan combined with a weak crypto market globally.
The Japanese-facing exchange is operated by a Kraken subsidiary, Payward Asia Inc., which previously operated in Japan from 2014 to 2018 before pulling out in April 2018. The company decided to relaunch with a headquarters in Tokyo in October 2020, offering spot trading on five major assets with plans to expand. Now, however, Kraken has decided to cease its operations in Japan.
Kraken stated that the decision to leave Japan was made in order to prioritize resources and investments, and that the resources needed to further grow their business in Japan were not justified at this time. All affected clients will be able to withdraw their funds from the exchange by Jan. 31 at the latest. Users can withdraw crypto holdings to an external wallet, or convert their portfolio to Japanese yen and then transfer it to a domestic bank account. Withdrawal limits will be removed in January to facilitate the withdrawal process.
Kraken has expressed its regret at leaving Japan but reassured customers that the decision was made in the best interest of their business. The company also stated that they hope to return to Japan in the future when market conditions become more favorable. In the meantime, the company will continue to focus its resources on growth in other geographical areas.