- Cryptocurrency exchange Kraken said on Wednesday it would cease its operations in Japan next month, citing a "weak global crypto market."
- The company will be deregistered with the Japan Financial Services Agency on January 31, 2023.
- Kraken has been cutting costs lately. On November 30, the company cut 1,100 jobs, equivalent to 30% of the workforce.
© Powered by CNBC Kraken is one of the largest cryptocurrency exchanges in the world.Digital currency exchange Kraken will close operations in Japan next month in another sign of consolidation in the battered cryptocurrency sector.
In a blog post Wednesday, Kraken said it would suspend cryptocurrency trading services through its Japanese subsidiary, Payward Asia, and cancel its registration with the Japan Financial Services Agency on January 31, 2023.
This is the second time Kraken has left the Japanese market. The first was in 2018 when it closed four years after starting operations in 2014. It restarted in the country in 2020 after receiving registration from regulatory bodies.
Kraken said the move was "part of Kraken's efforts to prioritize resources and investment in areas that are aligned with our strategy and will provide Kraken with the best conditions for long-term success."
He cited a combination of "current market conditions in Japan" and a "weak global cryptocurrency market" as reasons for his decision.
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Customers in Japan have until January 31 to withdraw their fiat and cryptocurrency assets from the Kraken platform, the company said in a statement. They will have the option of withdrawing their cryptocurrency to an external wallet or cashing out and transferring Japanese yen to an internal bank account.
Starting January 9, users in Japan will not be able to fund their accounts, although trading features will remain intact, allowing them to convert their balances into assets of their choice.
Kraken is one of the largest cryptocurrency exchanges in the world, with a daily trading volume of $408.9 million, according to CoinMarketCap.
Along with some of the other big players in the industry, the company has recently cut costs. On November 30, the company cut 1,100 jobs, or 30% of its workforce, as it needed to "adapt to current market conditions".
Cryptocurrencies have been hit by all kinds of scandals this year, which has been dubbed a "terrible year" for the industry.
Mining began with the collapse of Terra, a $60 billion former stablecoin operator, followed by the collapse of other dominoes associated with the project, including cryptocurrency lender Celsius and hedge fund Three Arrows Capital.
The FTX cryptocurrency exchange bankruptcy is the most prominent bankruptcy in the industry to date. Controversial co-founder and former CEO Sam Bankman-Fried has been released on bail pending trial on fraud and other charges.
The price of bitcoin and other digital currencies fell as investors angered markets and rising interest rates put pressure on speculative assets like technology stocks. Bitcoin, the world's largest token, is down more than 60% this year.