Kraken to Deregister from Japan FSA, Users Urged to Withdraw Funds
-Crypto exchange Kraken plans to deregister from the Japan Financial Services Agency (JFSA) on Jan. 31, 2023.
-The company cites the current global crypto market state as the reason for this move, saying that “the resources needed to further grow our business in Japan aren’t justified at this time.”
-Kraken has advised users to withdraw all of their fiat currencies and cryptocurrencies being held on Kraken Japan before the Jan. 31 date.
Kraken, one of the world’s leading crypto exchanges, has announced plans to deregister from the Japan Financial Services Agency (JFSA) by the end of January 2023. This decision comes amidst the company’s analysis of the current global crypto market state and its resources needed to further grow their business in the Japanese market.
The crypto winter has been a drawn-out one, exacerbated by the collapse of large players such as Terra and the FTX crypto exchange. As crypto businesses continue to feel the effects of the bear market, another major player, Kraken, has been affected to the point that it has, once again, put a pause on operations in Japan.
Kraken revealed that it was laying off about 30% of its workforce last month, amounting to 1,100 employees who lost their jobs. This decision to deregister from the JFSA is likely in order to reduce costs and focus on other markets.
Kraken has advised users to withdraw all of their fiat currencies and cryptocurrencies being held on Kraken Japan before the Jan. 31 date. The exchange plans to stop providing services to users in the country and has assured that it would allow users to withdraw all of their funds held on the exchange.
Kraken’s decision to deregister from the JFSA is a notable one and yet another example of the prolonged crypto winter. Crypto businesses are feeling the effects of the bear market and it remains to be seen how the industry will adjust to the current market conditions. For now, Kraken’s users in Japan are advised to withdraw their funds before the January 31 deadline.