Kraken Is Going To Quit the Japanese Market Before the End Of the Next Month
Kraken, a well-known crypto exchange company, has disclosed in its blog post published today that the platform would put an end to its market in Japan by 2023’s January, This news is witnessed at a time when the sentiments in the crypto market are not very promising and the downturn is consistently haunting the community.
Kraken Declares Quitting Japanese Market amid Crypto Downturn
Kraken Japan mentioned that based on the present market scenario of Japan as well as the worldwide downturn in the crypto market, the company has taken a decisive turn. As per the platform, it would be hard for it to carry on investments of resources required for additional development in the business based in Japan.
The crypto exchange noted that the respective decision has been taken in line with its global plan related to the priority given to the resources for the long-term performance of the firm. In the meantime, Payward Asia (the operator working under Kraken Tokyo) will permit its consumers to take out their assets or transact them to some other wallets till its closure deadline.
Following that time, the platform will put an end to its operations in Japan. This is because the crypto exchange will get its registration canceled under the Japan Financial Services Agency (JFSA). The company will stop the deposit operation of its accounts on the 9th of January in the coming year. Nonetheless, the clients will not be hindered in their trades to transfer the crypto assets.
The firm additionally revealed that its platform has considerable funding liquidity with which the clients influenced by its decision to rapidly extract their funds will be compensated respectively. The crypto exchange has guaranteed its community a few weeks following its criticism by Changpeng Zhao (the chief executive officer of Binance). Zhao stated that the platform has increased yearly percentage yields but even then declared layoffs.
In the previous month, Kraken pointed asserted that it was eliminating 30% of its workforce (approximately 1,100) employees. This was done after the stringent liquidity crises faced by many crypto exchanges after the downfall of FTX. In advance of that, the collapses of Celsius and Terra LUNA platforms had also caused a tremor in the whole crypto industry during the current year.
The other big problems being faced by the crypto institutions take into account the heightened scrutiny from the regulatory agencies as well as the lowered trust of the investors in the crypto market. The regulatory difficulties are pushing the entities from taking new initiatives whereas the investors are reluctant to allocate their funds to the existing projects in the market. In this way, the crypto winter is worsening the situation.
In the previous year, more than one trillion dollars from the total market capitalization in the crypto industry was wiped out. At the moment, the worldwide market capitalization of cryptocurrency is near $832B valuation. Apart from that, Bitcoin (the top crypto token) has lost up to seventy-five percent of the cumulative value thereof since it reached its all-time high.
Crypto Exchange Assures Its General Operations Will Not Be Disturbed
Back in November 2021, Bitcoin (BTC) touched a peak point of around $69,000. During that time, the whole crypto market was getting a lot of attention and valuation however after that the downturn started. Kraken crypto exchange has assured that the decision taken by it to leave Japanese jurisdiction will not put an enormous impact on the general operations of its platform.
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