Kraken, the US-based crypto exchange, has announced that it will impose a ban on its business operations in Japan next month. According to the official blog post, the firm said that the current market situation in Japan was one of the main reasons for the decision to stop its business operations. It also blamed the weak global crypto market. Kraken is set to deregister from the Financial Services Agency (JFSA) by January 31, 2023. It has officially asked its clients to withdraw their fiat and crypto holdings.
The company said in a formal statement, "The decision is part of Kraken’s efforts to prioritise resources and investments in those areas that align with our strategy and will best position Kraken for long-term success."
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The firm claimed that a weak crypto market globally means the resources needed to further grow their business in Japan aren’t justified at this time. As a result, Kraken will no longer service clients in Japan through Payward Asia.
Earlier, Kraken stated that the company could cut down its workforce by 30 per cent because difficult market circumstances affected the demand for digital assets badly.
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The company said that they value the trust that their clients have shown towards them. They have promised to do whatever they can to minimise the impact of their current move. It also added that Kraken is fully funded to ensure that all affected clients are able to withdraw their assets in a timely manner.
The firm will remove deposit functionality from clients' accounts on January 9, 2023. However, the trading functionality will remain operational so that customers can convert their balance into any asset of their choice. Kraken has also eliminated withdrawal limits for the month of January to ensure a smooth transfer of assets from Kraken.
Post the completion of the deregistration process, the company will send the remaining JPY to a Guaranty Account at the Legal Affairs Bureau as per the law. In that case, customers will have to get in touch with the Legal Affairs Bureau directly, for any asset transfer from Kraken.
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