Kraken, a popular crypto assets custodian, said it would deregister from Japanese financial authorities by January. Hence, it urged users of its Japan branch to withdraw their funds as it would suspend its operations by February 1st.
Kraken Withhold Operation From Japan
According to the announcement, Kraken is no longer in compliance with the financial authorities in Japan. It added that it would cease to operate in the region by the end of January 2023.
Hence, the decentralized crypto custodian is giving users in the country till January 31st to withdraw their funds from the platform. In the announcement, Kraken said it is leaving Japan to explore investments and resources in regions with an environment that is friendly with its operation.
It added that the decision is to put the firm in a market environment that would benefit it and its users. Furthermore, the crypto platform stated that the current harsh market regulation coupled with the generally bearish global markets required great resources, which the firm cannot cope with now.
Hence, Kraken concluded that it would leave the Payward Asia services for the time being. Therefore, Kraken stated that the deadline for users to withdraw their funds is January 31st.
However, according to reports, many clients expressed their discomfort concerning the abrupt decision. Nevertheless, the firm added that it would stop accepting deposits by next month’s end.
However, traders would still have access to its primary trading feature beyond January. The extended time of operation is to allow investors to transfer their crypto assets to another platform or convert it into currency and withdraw it with their local bank.
The crypto assets custodian would swap all non-JPY fiat currency like EUR and USD and crypto assets to Yen by January 31st. Afterward, Japanese clients would have to comply with the Legal Affairs Bureau in the country to withdraw their JPY holdings.
Kraken Lay Off About 1,100 Staff Members
Before Kraken announced the withdrawal of its services from Japan, it had earlier announced that it would cut its workforce by 30%. The 30% users equate to about 1,100 staff that would likely lose their job.
The CEO of Kraken, Jesse Powell, gave the update regarding the staff reduction a few days ago. According to the report, the firm plans to restore the workforce to the smaller size it used to have about one year ago. It stated that the cut would help it cope in the bearish crypto environment. According to on-chain data, Kraken exchange operates in about 190 nations.