Krakening Down: The End of an Era
In a surprising move, Kraken has declared that it’s pulling the plug on its crypto operations in Japan. After nearly four years of trading since its launch in October 2014, the platform’s decision, informed through an email statement, highlights the challenges of operating in a market with rising costs.
Why Leave Now?
According to Kraken, the shifting landscape of expenses has prompted this tough decision. The exchange stated, “Suspending services for Japan residents will allow us to better focus on our resources to improve in other geographical areas.” In other words, they’re making a strategic retreat to regroup and possibly charge back in at a later date.
The Impact on Traders
For the active Japanese traders, this means they won’t be able to continue using Kraken after the end of June 2018. However, don’t fret too much—Japanese citizens living abroad can still utilize the platform. What a relief! Now they can still buy their crypto while enjoying sushi in the comfort of their favorite foreign country.
Regulatory Pressure as a Factor
This shutdown appears to coincide with Japan’s stricter regulatory environment. Following the infamous Coincheck hack, where roughly $534 million in NEM was stolen, the Japanese Financial Services Agency (FSA) has been scrutinizing the cryptocurrency market. They inspected 15 unregistered exchanges as part of an effort to tighten regulations.
The Changing Landscape of Exchanges
What does this mean for the future of crypto exchanges in Japan? It’s clear the landscape is shifting. Some exchanges, like Binance, chose to exit the market altogether or relocate rather than comply. Others have adapted to survive under new regulatory scrutiny. As Kraken exits, it raises nagging questions: Could they return? Will the crypto world ever feel quite the same without them?
Wrapping It Up
While Kraken’s departure from Japan is definitely a blow to local crypto enthusiasts, the exchange’s focus on improving services for other regions might pay off in the long run. After all, in the wild west of crypto, companies come and go faster than you can say ‘blockchain’. Let’s keep an eye on how this unfolds.
