Crypto Exchange Kraken to Cease Operations in Japan

U.S. based crypto exchange Kraken said on Wednesday said it has decided to cease its operations in Japan.

Kraken will deregister from the Financial Services Agency (JFSA) as of Jan. 31, 2023, it said in a statement.

This move didn't come without warning. Earlier this month, Kraken announced its plan of laying off​ around 1,100 employees globally, or 30% of its workforce.

The exchange explained in its blog post: "Since the start of this year, macroeconomic and geopolitical factors have weighed on financial markets. This resulted in significantly lower trading volumes and fewer client sign-ups." He added: "We responded by slowing hiring efforts and avoiding large marketing commitments."

Kraken is the latest cryptocurrency exchange to go out of business amid the crypto winter. In November, Genesis Block​, a Hong Kong-based crypto services company, ceased its over-the-counter (OTC) trading services in wake of contagion risks from the now-bankrupt FTX exchange. Prior to this, crypto companies such as Crypto.com​ and Freeway​ had suspended some businesses successively.