Cryptocurrency exchange company Kraken announced it would cease operations in Japan amid a deteriorating cryptocurrency industry.
"We would like to inform you that after due consideration, Kraken has decided to cease its operations in Japan and deregister from the Financial Services Agency (JFSA) as of Jan. 31, 2023," Kraken said in a blog post published on Wednesday in both Japanese and English. "The decision is part of Kraken's efforts to prioritize resources and investments in those areas that align with our strategy and will best position Kraken for long-term success."
Kraken made another post that stated the business could not grow due to poor market conditions and a weak crypto market in Japan. It plans to discontinue its client service through Payward Asia.
Kraken informed its clients that they have until Jan. 31 to withdraw their funds from the platform.
"We value the trust our clients put in us and we will do what we can to minimize the impact of our decision for you," the company said in its statement. "That's why we are committed to ensure a seamless transition and we hope the information in this email will help you decide what is the best option for you."
"Kraken is fully funded to ensure all affected clients can withdraw their assets in a timely manner," the company said in its statement.
The announcement comes amid the fallout of the cryptocurrency market FTX, which filed for bankruptcy last month, causing concerns for the digital market currency.
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