google-site-verification=4ughixIuTRnLcSaPAOoQudexoumFVsL4qi6UJDvlUc8 Crypto exchange Kraken to shutter its Japan operations after global layoffs. - Trending News trending news

Crypto exchange Kraken to shutter its Japan operations after global layoffs.

Invoking a “poor crypto market globally,” cryptocurrency exchange Kraken said on Wednesday that it will cease operations in Japan the next month.On January 31, 2023, the corporation will revoke its registration with the Financial Services Agency of Japan.

Recently, Kraken has been trying to minimise expenses. The company cut 1,100 positions, or 30% of its employees, on November 30.

Next month, digital currency exchange Kraken will cease operations in Japan, marking yet another symptom of market concentration.

On Wednesday, Kraken announced that on January 31, 2023, it would stop offering cryptocurrency trading services through its subsidiary in Japan, Payward Asia, and deregister from the Financial Services Agency of Japan.

This is Kraken’s second exit from the Japanese market. The first was in 2018, four years after it started operating, when it shut down. In 2020, it reopened in the nation after obtaining regulator registration.

As part of its efforts to focus resources and investments in areas that are consistent with its vision and will best position it for long-term success, Kraken said the action was taken.It gave as justifications for its choice a mix of “current market conditions in Japan” and a “poor crypto market globally.”

According to the business, Japanese customers have until January 31 to withdraw their fiat and cryptocurrency assets from the Kraken platform. They will have the choice of cashing out and transferring Japanese yen to a local bank account or withdrawing their cryptocurrency to an external wallet.

Users in Japan won’t be able to deposit money into their accounts starting on January 9, but trading capability will still be available so they can exchange their balance for the asset of their choice.

According to data from CoinMarketCap, Kraken is one of the biggest cryptocurrency exchanges in the world, processing $408.9 million in daily trading activity.

It has recently been heavily engaged in cost-cutting mode, along with many other significant industry participants. The company cut 1,100 employees on Nov. 30, or 30% of its personnel, claiming that this was necessary to “adjust to current market realities.”

This year has been dubbed the industry’s “annus horribilis” because of the numerous controversies that have afflicted the cryptocurrency space.

The suffering began with Terra’s failure, a once $60 billion stablecoin operator, and continued with the collapse of numerous other companies with exposure to the project, including the cryptocurrency lender Celsius and hedge fund Three Arrows Capital.

The most famous industry failure to date is the demise of the cryptocurrency exchange FTX. Sam Bankman-Fried, a contentious co-founder and former CEO, was freed on bond while he awaited trial on fraud and other allegations.

As investors lost faith in the market and as rising interest rates put downward pressure on speculative assets like tech stocks, the price of bitcoin and other digital currencies has fallen. The largest token in the world, Bitcoin, has decreased by more than 60% this year.

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