Kraken No Longer finds it Feasible to Operate in Japan


Kraken, arguably the oldest cryptocurrency exchange in the entire crypto-verse has made an announcement about its operations in Japan.

According to the officials at the Kraken exchange, they will cease to operate in Japan as they are not seeing much demand in the region.

Kraken to Pull out of Japan

The Kraken exchange, which has been operating in Japan for some time, has announced that they no longer find it feasible to continue operating in the country.

They are not seeing much revenue coming in from the cryptocurrency services they are offering in the country. Therefore, they have decided that they will pull out of the country.

As per the officials, they had an internal meeting among all the executives to decide what they wanted to do in Japan.

Turns out, all the directors and the executives were unanimous in saying that it was a wise decision to cease operations in Japan.

Therefore, the exchange will proceed with their extraction from the Japanese soil. They will gradually pull out of Japan making sure that the investors in the country do not face any kind of problems.

Exchange to deregister itself

The teams have also confirmed that apart from ceasing their operations in Japan, they will also proceed with deregistration of their business.

They have already approached the Financial Services Agency (JFSA) in Japan for this purpose.

In Japan, any cryptocurrency firm aiming to offer custodial, trading, and any other kinds of services related to cryptocurrencies, must get registered by the JFSA.

If a business is not registered, then it is in breach of the cryptocurrency laws being practiced in the country.

The Kraken exchange had registered itself to operate in Japan as it is a highly regulated entity operating across the globe.

The officials have confirmed that they will delist their business as a regulated entity in Japan on January 31, 2023.

This way, they will make sure that no other entity is able to misuse their registration information to lure innocent investors and run any kind of fraud.

The reason behind the Withdrawal

The executives announced through a blog post that they have been operating in Japan for some time hoping to see the adoption level rise.

Unfortunately, they overestimated the level of cryptocurrency adoption in the country. They have not recorded much adoption of cryptocurrencies in the country.

They have concluded that the demand in the country is not enough, which is why it is not feasible to continue operating in the country.

The economic downfall is also one of the reasons why many people are no longer eager to learn and explore cryptocurrencies.

Considering all these factors, they have decided that they will no longer operate in the country until the conditions become favorable.