Crypto exchange Kraken is reportedly set to shut down its operations in Japan next month, in yet another sign that the crypto industry is under pressure.
Based on the report, Kraken stated that they will discontinue their crypto trading services by closing down their Japanese subsidiary, Payward Asia, and deregistering from the Japan Financial Services Agency on January 31, 2023.
This is the second time Kraken has left the Japanese market. The first time was in 2018, when it closed four years after starting operations in 2014. It relaunched in the country in 2020 after getting registration from regulators.
Kraken said the move is "part of Kraken's efforts to prioritize resources and investments in areas that align with our strategy and will better position Kraken for the long term."
Kraken stated that among the factors for the closure was that it cited a combination of "current market conditions in Japan" and "weak crypto markets around the world" as reasons behind the decision.
Japanese users have until January 31 to withdraw their fiat and crypto holdings from the Kraken platform, the company said. They have the option to either withdraw their crypto to an external wallet or cash and transfer yen to a domestic bank account.
From January 9, users in Japan will no longer be able to deposit funds into their accounts, although the trading function will remain, where they can still exchange their balances for assets of their choice.
Kraken is one of the largest crypto exchanges in the world, processing $408.9 billion in trading volume daily, based on CoinMarketCap data.
Along with most of the other major industry players, Kraken has also been on the cutting edge lately. On November 30, the firm cut 1,100 jobs, or 30% of its workforce, a move it said was necessary to "adapt to current market conditions."
Since the collapse of Terra, it has brought a domino effect to the crypto market. Among the latest is the FTX crypto exchange going bankrupt.
