Kraken, a digital currency exchange, would cease operations in Japan next month, marking yet another symptom of market concentration.
By the end of January 2023, U.S.-based cryptocurrency exchange Kraken will “cease its operations” in Japan and deregister from the Financial Services Agency, according to a statement released on Wednesday. Clients of Kraken will no longer be served by its local affiliate Payward Asia.
The Kraken platform will allow Japanese users to withdraw their fiat and cryptocurrency assets until January 31st, the firm announced. They will have the choice of cashing out and transferring Japanese yen to a local bank account or withdrawing their cryptocurrency to an external wallet.
It has recently been heavily engaged in cost-cutting mode, along with many other significant industry participants. The company cut 1,100 employees on Nov. 30, or 30% of its personnel, claiming that this was necessary to “adjust to current market realities.”
It cited as explanations for its decision a combination of “current market conditions in Japan” and a “poor crypto market globally.”
This year has been termed the ” year of disaster” because of the multiple scandals that have shaken the cryptocurrency sector.
The hardship began with Terra’s collapse, a once $60 billion stablecoin operator, and continued with the failure of numerous other companies with exposure to the project, including the cryptocurrency lender Celsius and hedge fund Three Arrows Capital.
The most noteworthy industry failure to date is the bankruptcy of the cryptocurrency exchange FTX. Sam Bankman-Fried, a controversial co-founder and former CEO, was granted bail while he awaited trial on fraud and other charges.
The bankruptcy of the Bahamas-based cryptocurrency exchange FTX.com, which has tarnished the reputation of centralized exchanges, coincides with Kraken’s exit from Japan.Also Read: