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Cryptocurrency exchange Kraken announced today that it will close its operations in Japan, citing a “weak global crypto market,” one month after the company announced global layoffs.
The company said it will cease operations and deregister with the Financial Services Agency by January 31, 2023. Kraken said clients will have to completely remove funds from exchanges by then.
“This decision is part of Kraken’s commitment to prioritizing resources and investments in areas aligned with our strategy to best position Kraken for long-term success,” the company said in a statement. says. “The current market conditions in Japan and the weakness of the global cryptocurrency market means that the resources needed to further grow our business in Japan are not justified at this time.”
The company added that the exchange is fully funded and all client holdings are withdrawable. there is no.
On January 9th, the deposit functionality will be disabled. However, the trading functionality will still work.
Kraken’s exchange business in Japan is operated by its subsidiary, Payward Asia Inc. This is his second time for the same subsidiary to withdraw from Japan. Previously, he operated in the country from 2014 to 2018, but ceased operations in April 2018 to focus on other regions. We resumed our activities in 2020.
The decision comes a month after the company laid off 30% of its workforce, or about 1,100 employees.
At the time, Kraken co-founder Jesse Powell said the exchange was cutting staff due to “macroeconomic and geopolitical factors” and an ongoing bear market leading to lower trading volumes on the exchange. I said I needed to.
Bitcoin, the largest cryptocurrency by market capitalization, has lost more than 60% of its value since the beginning of the year as part of what the bear market dubbed “Crypto Winter”. The troubles in the cryptocurrency market began with the collapse of the TerraUSD stablecoin ecosystem, leading to a string of high-profile bankruptcies, including crypto lender Celsius Network and hedge fund Three Arrows Capital. These situations will only be exacerbated by the collapse of the cryptocurrency exchange FTX.
Image: vjkombajn/Pixabay
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