Kraken Crypto Exchange to Close Japan Office Following Global Job Cuts

Digital currency exchange Kraken will be shutting down its operations in Japan next month. This is yet another sign of consolidation in the crypto industry, which has been battered in recent months.

On Wednesday, Kraken announced that it would be ceasing crypto trading services through its Japanese subsidiary, Payward Asia, and deregistering from the Japan Financial Services Agency on January 31, 2023. In a blog post, the company explained that this decision was made in order to focus on other areas of growth.

This is the second time Kraken has left the Japanese market. The first time was in 2018, when it closed four years after initially establishing operations in 2014. It relaunched in the country in 2020 after securing registration from the regulator.

Kraken announced that it is redirecting resources and investments to areas that align with its strategy for long-term success. According to Kraken, this move will position the company better for future success.

The company cited a combination of current market conditions in Japan and a weak crypto market globally as the reasons behind its decision.

Kraken has announced that Japanese customers will have until January 31 to withdraw their fiat and crypto holdings from the platform. Customers will have the option to either withdraw their crypto to an external wallet or cash out and transfer Japanese yen to a domestic bank account.

Starting from January 9, Japanese users will no longer be able to deposit funds into their account. However, they will still be able to trade and convert their balance to the asset of their choice.

Kraken is one of the world's largest cryptocurrency exchanges, with daily trading volumes of over $400 million, according to CoinMarketCap data.

In response to current market conditions, the company has cut 1,100 jobs, or 30% of its workforce. This is in line with what many other major industry players are doing at the moment.

This year has been tough for the crypto industry, with a string of scandals earning it the nickname of "annus horribilis."

The problems started with the collapse of Terra, a once $60 billion stablecoin operator. This was followed by the failure of several other companies with exposure to the project, including the crypto lender Celsius and hedge fund Three Arrows Capital.

The bankruptcy of crypto exchange FTX is the most notable industry failure so far. Its controversial co-founder and former CEO Sam Bankman-Fried has been released on bail while awaiting trial for fraud and other criminal charges.

Prices of bitcoin and other digital currencies have fallen as investors have become less optimistic about the market and as rising interest rates have made speculative assets such as tech stocks less attractive. Bitcoin, the world’s biggest token, is down by over 60% so far this year.