{"id":26338,"date":"2022-12-28T19:03:52","date_gmt":"2022-12-28T19:03:52","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/12\/28\/crypto-exchange-kraken-plans-to-close-its-japanese-operations-after-global-layoffs\/"},"modified":"2022-12-28T19:03:52","modified_gmt":"2022-12-28T19:03:52","slug":"crypto-exchange-kraken-plans-to-close-its-japanese-operations-after-global-layoffs","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/12\/28\/crypto-exchange-kraken-plans-to-close-its-japanese-operations-after-global-layoffs\/","title":{"rendered":"Crypto exchange Kraken plans to close its Japanese operations after global layoffs"},"content":{"rendered":"

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Cryptocurrency exchange Kraken announced today<\/a> that it is shutting down its operations in Japan citing a \u201cweak crypto market globally\u201d a month after the company announced global layoffs.<\/p>\n

The company said that it will cease operations and deregister from the Financial Services Agency by Jan. 31, 2023. Kraken stated that clients will have to fully remove their funds from the exchange by that time.<\/p>\n

\u201cThe decision is part of Kraken\u2019s efforts to prioritize resources and investments in those areas that align with our strategy and will best position Kraken for long term success,\u201d the company said in a statement. \u201cCurrent market conditions in Japan in combination with a weak crypto market globally mean the resources needed to further grow our business in Japan aren\u2019t justified at this time.\u201d<\/p>\n

The company added that the exchange is fully funded and all client holdings are available for withdrawal. Clients can withdraw their holdings are crypto or to external bank accounts and there are no withdrawal limits.<\/p>\n

On Jan. 9, deposit functionality will be deactivated. Although trading functions will remain in operation.<\/p>\n

Kraken\u2019s Japanese exchange operations are run by its subsidiary Payward Asia Inc. This marks the second time that the same subsidiary has pulled out of Japan. It had previously operated in the country from 2014 to 2018, when it ceased operations in April 2018 to focus on other geographic regions. It relaunched operations<\/a> in 2020.<\/p>\n

The decision comes a month after the company laid off 30% of its workforce,<\/a>\u00a0or approximately 1,100 employees.<\/p>\n

At the time, Kraken\u2019s co-founder Jessie Powell said that \u201cmacroeconomic and geopolitical factors\u201d and ongoing bear markets leading to lowered trading volumes on the exchange had created the need for the exchange to reduce its workforce.<\/p>\n

Bitcoin, the largest cryptocurrency by market cap, has lost over 60% of its value since the beginning of this year, as part of what a bear market dubbed \u201ccrypto winter.\u201d Troubles for the crypto markets began with the collapse of the TerraUSD stablecoin<\/a> ecosystem, which led to a string of high-profile bankruptcies including the crypto lender Celsius Network<\/a> and the hedge fund Three Arrows Capital<\/a>. These conditions have only been exacerbated by the implosion<\/a> of the crypto exchange FTX.<\/p>\n

Image: vjkombajn\/Pixabay<\/h5>\n
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