For the second time, Kraken has left Japan, citing a "poor crypto market."

Because of a “poor crypto market,” the major cryptocurrency exchange Kraken has chosen to shut down operations in Japan for a second time.

In a blog post published on December 28, Kraken stated that as part of its plans to “prioritize resources” and expenditures, the company has chosen to stop operating in Japan and deactivate with the Financial Services Agency by January 31, 2023. It said:

“Current market conditions in Japan in combination with a weak crypto market globally mean the resources needed to further grow our business in Japan arent justified at this time.”

The exchange that Kraken offers to Japanese users is run by its affiliate Payward Asia Inc. From 2014 to 2018, the same subsidiary firm operated in Japan prior to actually leaving in April 2018 to better concentrate its energies on expansion in “other geographical locations.”

The subsidiary made the decision to relaunch in October 2020 with a Tokyo base, enabling spot trading on five significant assets with future expansion plans. With the conclusion of the second round, Kraken has agreed to permit all impacted customers to withdraw their cash from the exchange by January 31, 2023, at the latest.

Users have the option of withdrawing their cryptocurrency assets to a third-party wallet or changing their portfolio to Japanese Yen before transferring it to a local bank account. In addition to the mechanism for allowing users to retrieve their staked Ether (ETH), which will be disclosed soon, withdrawal restrictions will be eliminated in January. On January 9, transfers will no longer be possible, although trading will still be possible.

In recent months, Kraken seems to have prioritized cost reduction.

In light of the stiff competition, Kraken said on November 30 that it has made one of its “hardest decisions” to reduce its global staff by about 1,100 individuals, or 30% of its manpower.

The exchange claimed that lower trading activity and a decline in new client registrations were factors in Kraken's choice to cut costs, and that these adjustments were required “to sustain the business for the long-term.”

The most recent revelation also stated that Kraken's removal from the Japanese market will not materially affect the company's total operations in the Japanese language version.

About Kraken

Kraken, situated in San Francisco, is a cryptocurrency exchange allowing currency traders to swap different cryptocurrencies. It operates similarly to a stock exchange that allows trading activities. The users are permitted to purchase or sell cryptocurrencies using a variety of fiat currencies, such as U.S. dollars, Canadian dollars, euros, and Japanese yen.

Kraken was founded in 2011 and finally began operating as a trading platform in 2013.

It is managed by CEO and co-founder Jesse Powell and is controlled by Payward Inc.

It enables simple money transfers to and from the user's linked bank accounts as well as the transfer of cryptocurrency to and from the individual's digital wallets from a brokerage account connected to Kraken.

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