The US-based cryptocurrency exchange's announcement comes amid falling asset values and an industry-wide reckoning over FTX.
US-based cryptocurrency exchange Kraken has announced it is leaving Japan, becoming the latest player to scale back trading after a year of terror for digital assets.
Kraken will cease operations in the East Asian country by deregistering from the Financial Services Agency on January 31, the company said in a statement on Wednesday.
Kraken said that clients should withdraw their fiat and crypto holdings before then, with the exchange "fully funded to ensure that all affected clients can withdraw their assets in a timely manner."
“Current market conditions in Japan, in combination with a weak crypto market globally, mean that the resources required to further grow our business in Japan are not warranted at this time. As a result, Kraken will no longer serve customers in Japan through Payward Asia," Kraken said.
“We value the trust our clients place in us and will do everything possible to minimize the impact of our decision on you. That's why we are committed to ensuring a smooth transition and hope the information in this email will help you decide which option is best for you."
Kraken's announcement comes days after it revealed plans to lay off 1,100 employees, or nearly a third of the total workforce, amid an industry-wide reckoning following the spectacular fall from grace of FTX and its founder. Sam Bankman-Fried.
The bankruptcy of FTX and the subsequent arrest of Bankman-Fried on multiple fraud charges it sent shockwaves through the industry, prompting calls for tighter regulation and predictions of long-term decline for the sector.
Cryptocurrency prices have plummeted in 2022, with the flagship asset Bitcoin losing nearly two-thirds of its value since the start of the year.
Kraken, which operates through its Payward Asia subsidiary, ceased operations in Japan in 2018, citing the rising cost of doing business in the country, before relaunching with an office in Tokyo two years later.
