• Kraken announced plans to shut operations in Japan again, citing a weak global crypto market as well as market conditions in the East Asian country.
• Kraken will deregister from the Financial Services Agency on January 31, 2023.
• The decision is part of Kraken’s efforts to “prioritize resources” and investments.

Kraken, the San Francisco-based crypto exchange, recently announced plans to shut operations in Japan. The decision to back out of the Japanese market is due to a combination of a weak global crypto market as well as unfavorable market conditions in the East Asian country. Kraken’s subsidiary, Payward Asia, will be deregistering from the Financial Services Agency on January 31, 2023.

Kraken has had a tumultuous history with the Japanese financial market. The exchange had previously ceased operations in the country in 2018, citing the same reasons – unfavorable market conditions and resource constraints. The exchange re-entered the Japanese market in 2019, but has now been forced to back out.

Kraken’s decision to deregister from the Financial Services Agency is part of the company’s efforts to “prioritize resources” and investments. Kraken’s CEO, Jesse Powell, said, “We are thankful to our Japanese stakeholders for their understanding of our difficult decision, and we look forward to serving them again in the future.”

Kraken had already been facing strict regulations in Japan before its announcement. The country’s Financial Services Agency had recently released a list of unregistered crypto exchanges that its citizens should avoid, along with a warning to investors about the risks involved in investing in cryptos.

Kraken’s decision to exit the Japanese market could have far-reaching implications. It could signal a further weakening of the global crypto market, leading to more exchanges being forced to back out of the country. On the other hand, it could also be seen as an opportunity for other exchanges to enter the Japanese market and take advantage of the lack of competition.

Regardless of the outcome, Kraken’s decision to deregister from the Financial Services Agency is certainly an interesting development in the world of crypto. It remains to be seen how the exchange’s withdrawal from the Japanese market will affect the crypto landscape in the long run.