In a blog post published on Wednesday, crypto exchange Kraken announced that it would leave the Japanese market at the end of January 2023. The news is released as prices are still falling and market sentiment is gloomy.
Kraken Japan said in a translated press release:
Based on the current Japan market landscape and the downturn in the global crypto market, we concluded that it would be difficult for Kraken to invest the resources needed to further grow its Japan business.
Trading Assets That Optimize Exchange
Additionally, it stated that the choice aligns with Kraken’s global strategy of prioritizing resources for the organization’s long-term performance. Users can withdraw or transfer money until the closing date with Kraken Tokyo operator Payward Asia. The JFSA will no longer list the exchange in their register.
On January 9, Kraken will stop allowing deposits into the accounts, and users can still engage in transactions to exchange their crypto assets. The exchange further stated that it would remove the withdrawal limitations in January to permit complete withdrawals.
It further stated:
Kraken has sufficient funding liquidity to enable all clients affected by this decision to withdraw their assets promptly.
Kraken Ensures Enough Stability
The promise comes a few weeks after Kraken’s high (APY) and layoff announcements drew criticism from the CEO of Binance.
Kraken disclosed last month that it is laying off 1,100 employees, or 30%, of its workforce. Several cryptocurrency businesses admitted to experiencing complex liquidity problems after FTX went down, and Celsius’s bankruptcy and Terra LUNA’s collapse in 2022 had previously rocked the market.
Market capitalization lost to the cryptocurrency market over the past year is over a trillion dollars. The market capitalization of all crypto is still roughly $832 billion as of publication. In addition, Bitcoin has lost more than 75% of its value since reaching a high of $69,000 in November 2021.
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According to Kraken, the decision to leave Japan won’t substantially impact the fund’s operations.
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