In a month, Kraken will no longer be operational in Japan. The cryptocurrency exchange justifies this decision by focusing its efforts on markets that guarantee long-term profitability. Users of the exchange based in Japan should not worry though. They will be able to withdraw their funds before Kraken’s operations in Japan are completely closed. Access to the cryptocurrency in the country will not be compromised either. Binance, which recently bought a Japanese exchange, could be an alternative.
On January 31, 2023, Kraken will withdraw from Japan
Cryptocurrency exchange Kraken announces the suspension of its services in Japan as of January 31, 2023. According to the exchange’s statement, the decision is motivated by the continued collapse of the crypto market and the difficult economic situation in Japan.
After reviewing the current situation surrounding the Japanese market and the collapse of the global cryptocurrency market, we came to the conclusion that it would be difficult for Kraken to invest the resources necessary to further expand its business in Japan.
Kraken
Despite shutting down its services in Japan, Kraken still believes in crypto. The exchange still sees cryptocurrency as a tool for its users “to achieve financial freedom and inclusion.” As such, Kraken will continue to facilitate access to cryptocurrency in other countries. In line with its new strategy, Kraken will focus its efforts in areas with high economic potential over the long term.
This is not the first time Kraken has left the Japanese market. Established in Japan since 2014, the Kraken platform had suspended its activities in the country in April 2018 due to the rising costs of its operations. The exchange had then returned to the Japanese market at the end of 2020 by registering with the Japan Financial Services Agency (JFSA), the Japanese financial regulator.
No worries for Kraken customers in Japan
While apologizing for the termination of its services in Japan, Kraken has reassured its customers that everything will be done to ensure that this decision does not harm them. Kraken assures that it has enough liquidity to quickly return funds to all its customers.
As a result, Kraken customers will be able to continue making deposits on the platform until January 9. After this date, they will only be able to trade on the platform (buy, sell and exchange crypto). Furthermore, Kraken customers have until January 31, 2023 to withdraw their funds from the platform. The exchange has even lifted the withdrawal limits to ensure that customers are not harmed.
No worries for customers who will not have withdrawn their crypto before this deadline. As of February 01, 2023, Kraken will convert all funds available on its platform into Japanese currency and deposit it at the Office of Legal Affairs. Thus, late customers will have to go to the Legal Affairs Office to access their funds.
Kraken’s absence in Japan covered by… Binance
Kraken customers in Japan will have no difficulty accessing the cryptocurrency. Indeed, the exit of the Kraken exchange from the Japanese market comes a few weeks after the arrival of Binance in the country.
Last November, the world’s largest crypto exchange announced that it had fully acquired Sakura Exchange BitCoin (SEBC). Based in Tokyo, SEBC is a crypto exchange that supports about ten coins.
By purchasing Sakura Exchange BitCoin (SEBC), Binance will no longer be required to register with the Japan Financial Services Agency (JFSA). SEBC is duly registered with the Japanese financial regulator. This acquisition relieves Binance of the time and expense of state registration.
Kraken’s withdrawal from the Japanese market is likely a consequence of the prolonged bear market. As long as the bear market persists, it may be difficult for Kraken to return to Japan. The good news is that the bear market will eventually pass, and Japanese users will continue to access the crypto.
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