According to Nikkei, Kraken announced that it will withdraw from Japan market at the end of January 2023. On December 1, Kraken announced that it would lay off 1,100 people worldwide, accounting for about 30% of its total workforce.
Kraken quits Japan for second time blaming a weak crypto market
Also, in a blog post published on December 28, Kraken stated that as part of efforts to “prioritize resources” and investments, the company has chosen to stop operating in Japan and deregister with the Financial Services Agency by January 31, 2023. It said:
“Current market conditions in Japan in combination with a weak crypto market globally mean the resources needed to further grow our business in Japan aren’t justified at this time. As a result, Kraken will no longer service clients in Japan through Payward Asia”, they stated.
The exchange that Kraken offers to Japanese users is run by its subsidiary Payward Asia Inc. From 2014 to 2018, the same subsidiary firm operated in Japan before leaving in April 2018 to better concentrate its energies on expansion in “other geographical locations.”
The subsidiary made the decision to relaunch in October 2020 with a Tokyo headquarters, enabling spot trading on five significant assets with future expansion plans. With the conclusion of the second round, Kraken has agreed to permit all impacted customers to withdraw their cash from the exchange by January 31, 2023, at the latest.
Users have the option of withdrawing their cryptocurrency holdings to a third-party wallet or changing their portfolio to Japanese Yen before transferring it to a local bank account. In addition to the mechanism for allowing users to retrieve their staked Ether (ETH), which will be disclosed soon, withdrawal restrictions will be eliminated in January.
On January 9, deposits will no longer be possible, although trading will still be possible. In recent months, Kraken seems to have prioritized cost reduction.
There has never been a dull moment in crypto, and this year was no different.
For a recap, check out Kraken’s 2022 Year in Review: https://t.co/dXF64amFpM pic.twitter.com/kIkeKarmMQ
— Kraken Exchange (@krakenfx) December 27, 2022
In light of the challenging market conditions, Kraken said on November 30 that it has made one of its “hardest decisions” to reduce its global staff by about 1,100 individuals, or 30% of its headcount.
The exchange claimed that lower trading activity and a decline in new client registrations were factors in Kraken’s decision to reduce costs, and that these adjustments were required “to sustain the business for the long-term.”
The most recent announcement also stated that Kraken’s removal from the Japanese market will not materially affect the company’s total business in the Japanese language version.
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