Kraken Exits Japan Again: The Ups and Downs of Crypto Trading

The Great Japanese Departure: Again?

In a bold move that has left the crypto community buzzing, Kraken, one of the world’s prominent cryptocurrency exchanges, has thrown in the towel on its Japanese operations for the second time. Citing not-so-great market conditions and the gutsy decision to prioritize resources, the company officially announced this via a blog post on December 28. The end date for its operations? January 31, 2023. Talk about a coincidental New Year’s resolution!

Why the Exit?

Kraken’s reasoning is as straightforward as a crypto chart in the bear market: “Current market conditions in Japan, combined with a weak crypto market globally, mean the resources needed to further grow our business in Japan aren’t justified at this time.” Basically, it’s not you, it’s the market! This round of exit, however, isn’t unprecedented as it mirrors their first departure from the Land of the Rising Sun back in 2018.

What’s Next for Clients?

For Kraken’s users in Japan, the light at the end of the tunnel isn’t an oncoming train! The company has assured affected clients that they can withdraw their funds without any fuss, allowing clients to transfer cryptocurrencies to external wallets or convert their holdings into Japanese yen for bank transfers. All withdrawal limits will reportedly be lifted, making it easier for users to reclaim their investments.

The Kraken Rollercoaster: A Brief History

• 2014-2018: Kraken’s initial stint in Japan.
• 2018: Exit stage left to focus on global growth.
• 2020: Return to the market with centralized operations based in Tokyo.
• 2022: The latest departure due to unfriendly market conditions.

This rollercoaster in Japan highlights the unpredictable landscape of the cryptocurrency world—one moment you’re booming, the next you’re pulling out of a market you once coveted.

Kraken and the Cost-Cutting Chronicles

In addition to egressing from Japan, Kraken seems to be taking a hacksaw to its operational costs. Recently, they announced significant layoffs, trimming about 30% of their workforce (that’s around 1,100 individuals!). The exchange attributed these drastic measures to dwindling trading volumes and a lack of new clients. Think of it as cleaning out the closet, but unfortunately, they accidentally tossed out the onesies along with the old shirts.

Parting Words in a Turbulent Time

Despite the exit from Japan, Kraken reassures its stakeholders that this strategy won’t negatively influence the overall business. In their Japanese updates, they conveyed a sense of optimism while keeping the focus on adjusting to market changes without throwing the baby out with the bathwater. As the crypto scene continuously evolves, here’s hoping that Kraken finds smoother sailing in other territories! Experience may be the best teacher—but sometimes, so is the exit door!