• Kraken, a cryptocurrency exchange, announced it will deregister from the Financial Services Agency in Japan and cease operations in the country as of January 31.
• Users in Japan have until the end of January to withdraw their fiat and crypto holdings.
• The company has cited „current market conditions in Japan in combination with a weak crypto market globally“ as the main reason for its decision.

Cryptocurrency exchange Kraken recently revealed that it would be exiting Japan and deregistering from the Financial Services Agency (FSA) as of January 31. This news has sent shockwaves throughout the crypto industry, as many users in Japan now face the prospect of losing their funds.

Kraken was founded in 2011 and is one of the oldest and most established cryptocurrency exchanges in the world. The company has been operating in Japan since October 2017 and has seen significant growth in the past few years. However, the company has now cited „current market conditions in Japan in combination with a weak crypto market globally“ as the main reason for its decision to deregister from the FSA.

In order to ensure that users are able to withdraw their funds in a timely manner, Kraken has provided a timeline for users in Japan to withdraw their fiat and crypto holdings. Users have until the end of January to withdraw their funds, with the option of transferring crypto to another wallet or wiring Japanese yen to a local bank.

The news of Kraken’s exit from Japan has been accompanied by other changes within the company. In September, Jesse Powell, a co-founder of the exchange, departed from his role as CEO. He was to be replaced by Chief Operating Officer Dave Ripley. Then, two months later, the company cut 30% of its global workforce as the crypto market continued to stagnate following the collapse of rival exchange FTX.

Kraken has stated that it will now prioritize resources and investments to ensure the long-term stability of the exchange. This news has been met with mixed reactions, as some users are concerned about the implications of the company’s departure from Japan, while others are optimistic that the decision will ultimately prove beneficial for the future of the exchange.