Kraken Crypto Exchange to End Operation in Japan

Crypto Exchange Kraken to End Services in Japan

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  • Kraken to stop operations in Japan.
  • The exchange cited rising operating costs as the cause.

Japan: According to an e-mailed statement, Kraken, a cryptocurrency exchange which has been in operation since 2014 in Japan will put an end to its operations in Japan. In the statement, Kraken exchange claims that it is shutting down operations in Japan due to the increasing costs of running the business there. At press time, Kraken is in the 10th position among the top cryptocurrency exchanges by 24 trading, with about $188 million in trades.

Kraken explains in the statement that it will end operations in Japan around the end of June 2018. Though the exchange gave the reason for leaving Japan, Kraken did not dismiss the fact that it may re-enter Japan in the future:

“Suspending services for Japan residents will allow us to better focus on our resources to improve in other geographical areas […] This is a localized suspension of service that only affects residents of Japan and does not impact services for Japanese citizens or businesses domiciled outside of Japan.”

Today, RubenFrosali tweeted a picture of the supposed emailed statement in full:

After Coincheck cryptocurrency exchange was hacked, losing about $534 million worth of NEM. Japan’s Financial Services Agency (FSA) began an on-site inspection of the country’s unregistered cryptocurrency exchanges. These inspections resulted in the temporary suspension of 3 exchanges, and issuance of business improvement notices to another 8. 2 other exchanges within Japan have chosen to close down operation rather than work with regulators for compliance. Binance has also decided to move its head office to Malta after receiving a notice from Japan’s Financial Services Agency that it is not registered.

Do you think this is a good decision by Kraken crypto exchange? Tell us your opinion in the comment box below.

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