Crypto exchange Kraken to cease operations in Japan amid market downturn

By Ovunc Kutlu

ISTANBUL (AA) - US-based cryptocurrency exchange platform Kraken announced Wednesday it has decided to stop its operations in Japan next month amid the current downturn in the global crypto market.

Kraken, the world's third largest crypto platform in terms of daily trading volume, said it will also deregister from Japan's Financial Services Agency as of Jan. 31 and will no longer serve Japanese customers through its subsidiary Payward Asia K.K.

"As a result of considering the current situation surrounding the Japanese market and the slump in the global cryptocurrency market, we came to the conclusion that it would be difficult for Kraken to invest the necessary resources to further grow its business in Japan," the firm said in a blog statement.

San Francisco-based exchange noted that the decision is also part of its global strategy to prioritize investing resources best suited for long-term success.

It said that customers must withdraw fiat currency and crypto assets held in their accounts by Jan. 31, noting it has enough liquidity for all customers to withdraw their assets promptly.

Kraken's decision came a month after the implosion of FTX, once the world's third biggest crypto exchange platform after Binance and Coinbase.

Former FTX CEO and founder Sam Bankman-Fried is facing eight charges from US prosecutors amid the sudden collapse of the company. He was released on bail of $250 million last Thursday and has his next court hearing scheduled for Jan. 3.