Crypto exchange Kraken confirmed in a blog post on Wednesday that it would quit the Japanese market by the end of January 2023. The news comes amid weak market sentiments and the ongoing bear price action.
In a translated release, Kraken Japan stated, “Based on the current Japan market landscape and the downturn in the global crypto market, we concluded that it would be difficult for Kraken to invest the resources needed to further grow its Japan business.”
Exchange Optimizing Investing Resources
It also said that the decision is consistent with Kraken’s worldwide strategy of prioritizing resources toward the company’s long-term performance. Meanwhile, Kraken Tokyo operator Payward Asia will allow users to withdraw or transfer their funds until the closure deadline. After this, the exchange will cease to exist in the Japan Financial Services Agency (JFSA) register.
Kraken will eliminate the accounts’ deposit functionality on Jan. 9. However, users can still undertake trades to convert their crypto assets. In addition, the exchange confirmed that it would lift January’s withdrawal restrictions to allow complete withdrawals. It also stated, “Kraken has sufficient funding liquidity to enable all clients affected by this decision to withdraw their assets promptly.”
Kraken Assures Enough Liquidity
The reassurance comes a few weeks after Binance CEO, Changpeng Zhao, took a jibe at Kraken for giving high annual percentage yields (APY) while announcing layoffs.
Last month, Kraken revealed that it is slashing its workforce by 30%, or 1,100 employees. After FTX went down, several crypto businesses accepted to be facing harsh liquidity conditions. Before that, Terra LUNA collapse and Celsius bankruptcy also shook the market in 2022.
The crypto market has wiped off over a trillion in cumulative market capitalization in the last year. At the time of press, the global cryptocurrency market cap remains close to $832 billion. Furthermore, Bitcoin has lost over 75% of its value since its November 2021 peak of $69,000.
Kraken has assured that the decision to pull out of Japan won’t significantly affect the exchange’s overall operations.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.