American crypto exchange Kraken announced on Wednesday that it will close its operations in Japan next month, citing current market conditions in the country and a weak crypto market globally. Kraken will deregister from the Financial Services Agency (JFSA) from January 31, by which time clients would have to withdraw their fiat and cryptocurrency holdings, it said in a statement.
Kraken said it was fully funded to ensure all affected clients could withdraw their assets in a timely manner. Last month, Kraken said it would cut its workforce by 30%, or about 1,100 employees, as tough market conditions crippled demand for digital assets.
Bitcoin, the leading cryptocurrency, has lost 60% of its value this year, while the broader crypto market has shrunk by $1.4 trillion, weighed down by the collapse of Sam Bankman-Fried’s FTX empire, Celsius, and alleged “stablecoins” terraUSD and Luna.
