Kraken to Exit Japanese Market Again in January 2023

Cryptocurrency exchange Kraken has decided to exit the Japanese market for the second time.

The United States-based digital assets service provider cited extra efforts that it has to make and the unfavorable market conditions in the region as the reason behind its decision. Therefore, on January 31st, 2023 Kraken will be delisted from the Japanese Financial Services Agency (FSA) as a digital assets service provider through Payward Asia K.K.

“We would like to inform you that Kraken has decided to suspend its business in Japan on January 31, 2023, and abolish the crypto asset exchange business registered by the Financial Services Agency. This decision is part of Kraken’s global strategy to prioritize investing resources where they are best suited for Kraken’s long-term success,” a Kraken blog post reads.

Kraken Customers to Move Assets before Feb 1st

Following the decision, Japanese Kraken users have been advised to transfer the assets in their wallets to an external account.

Also, they could decide to liquidate them and withdraw into a domestic bank account. Customers have no reason to fret about Kraken’s liquidity status, especially, as the U.S. crypto exchange has assuredly mentioned that it has sufficient liquidity to pay off all affected clients.

This is not limited to just assets held in regular Kraken wallets. Crypto assets that were previously staked via Kraken Staking services can also be unstaked or traded and transferred. The firm promised to share more information about how to retrieve staked Ethereum (ETH) in the coming days.

All transfers and withdrawals only need to be initiated and completed before January 31st, 2023. Unlike before when there was a withdrawal limit on the Kraken platform, customers will be able to withdraw any amount which their wallets hold from January. The embargo was lifted to avoid a delay in the transfer and withdrawal process. 

New deposits will no longer be accepted on the platform as of January 9th, 2023. Only buying, selling and transfers will be permitted until the stipulated window expires. 

Just like Japan, Kraken has suspended its operations in Russia due to heavy sanctions placed on them by both the U.S. and the European Union. On the other hand, it violated the U.S. sanction by letting Iranians use its platform and ended up paying a huge fine of $362,158.70 to the Department of Treasury’s Office of Foreign Assets Control (OFAC).