Kraken, a global cryptocurrency exchange has decided to stop operating in Japan for the second time. The main motivating factor behind this decision is a strain in its resources.
Kraken, in a blog post posted December 28, announced it had decided to deregister from Japan’s Financial Services Agency and cease operations in Japan by January 31, 2023. This decision was taken to prioritise its investments and resources, Kraken explained.
Payward Asia Inc. is Kraken’s wholly-owned subsidiary and manages the exchange that caters for Japanese customers.
From 2014 to 2018, the same subsidiary company operated in Japan. In 2018, it decided that it would no longer do business there and instead concentrate its resources on other parts of the globe.
The subsidiary decided to relaunch its operations in October 2020. It established Tokyo as its headquarters and began spot trading on five assets. Future expansion plans were also in place.
This is the second iteration. Kraken has promised to ensure that all customers affected by this change have the chance to withdraw their cash from the exchange no later than January 31st.
In January, withdrawal restrictions will be lifted and a process that allows users to reclaim their staked Ether (or any other cryptocurrency) will be implemented. This process will be described in greater detail in the near future.
Recent weeks have shown that Kraken’s main objective was to reduce operating expenses.
Kraken, in response to market conditions, stated on November 30 that it had made one of its most difficult decisions by reducing the number of employees it has around the world by approximately 1,100 people. This is equivalent to 30% of its total workforce.
Kraken stated that lower trading volumes and fewer customer signing-ups drove Kraken’s decision not to spend more and that adjustments were needed to help the company in the long-term.