Digital currency exchange platform Kraken will shut down its operations in Japan next month. In a post, Kraken said it will cease trading cryptocurrency services through its Japanese subsidiary, Payward Asia, and will deregister itself from Japan’s 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 its doors four years after starting operations in 2014 and then started the country’s revival in 2020 after obtaining registration by the regulator.
Kraken said the move is “part of efforts to prioritize resources and investments in those areas that align with our strategy and that will best position Kraken for long-term success.” The firm cited the combination of “current market conditions in Japan” and “global cryptocurrency market weakness” as reasons behind its decision.
Japanese customers will have until January 31 to withdraw their fiat and crypto holdings from the Kraken platform, the company said. And they will also have the option to withdraw their cryptocurrencies to an external wallet or to cash out and transfer the Japanese yen to a domestic bank account.
to a domestic bank account.
As of January 9, Japanese users will no longer be able to deposit funds into their account, although the trading functionality will remain active to allow them to convert their balance into an asset of their choice.