According to a recent report, Kraken, a prominent U.S.-based crypto exchange, announced that it will stop operating in Japan starting next month.
With 1,100 employees getting fired, Kraken is one of the worst-hit crypto platforms. According to the crypto exchange, the current state of the market in Japan and the overall crypto market conditions prompted them to take this step. The exchange wrote,
“The decision is part of Kraken’s efforts to prioritize resources and investments in those areas that align with our strategy and will best position Kraken for long-term success.”
Kraken currently operates as a Financial Services Agency [JFSA] registered exchange. However, on January 31, 2023, it will be de-registered by the Japanese regulator. The exchange as well as the government are currently urging users to withdraw their crypto holdings and fiat investments from the platform.
According to a statement from a Japanese government publication, Kraken was urging its clients to transfer their crypto into other exchanges or wallets.
Will Kraken survive the bear market?
Kraken’s tragic layoffs and the downfall of centralized exchanges [CEX] caused chaos in the market. Earlier this year, the exchange celebrated 11 years in the crypto-verse. However, 2022 made the community question if the exchange would survive the ongoing bear market.
Further elaborating on this year, the exchange recently stated,
“It’s been a long year. The cryptocurrency industry changes every day but this year it felt like a roller coaster. The best thing? That change brings us closer to a future where crypto is ubiquitous and financial equality is paramount. And we thank you for joining us for the ride.”