Kraken is Closing its Cryptocurrency Exchange Services in Japan

Kraken is closing its cryptocurrency exchange amid growing economic turmoils

Kraken is closing its cryptocurrency exchange services in Japan as the company restructures its entire infrastructure to analyze the losses incurred this year. Major cryptocurrencies like Bitcoin and Ethereum have lost significant chunks of their value, leading crypto exchanges and other businesses to fall out. Based on reports by the firm in a Japanese government publication, Kraken has asked clients to transfer their crypto token holdings into different wallets and exchanges into fiat currencies.

Besides, the fall of cryptocurrencies, scams, and frauds committed in the market are also some of the major reasons why crypto businesses fell. Last month, the fall of the FTX crypto exchange and the arrest of Sam Bankman-Fried left the crypto ecosystem in complete disarray. Kraken is also a victim of this chaos. Earlier, the crypto exchange said that it will cut 30% of its global workforce, which sums up around 1,100 people. The exchange followed similar moves as Coinbase Global Inc. and Gemini.

Currently, the crypto market is going through a lot of turmoil. However, people’s interest in the crypto market does not seem to drown. Crypto influencers like Elon Musk are constantly asking investors to involve themselves in crypto buying and trading. However, the growing confusion around regulation and scams is making investors leave the market, besides, the ongoing recession is also triggering investors to flee the market and look for more stable assets.

US officials have shown special interest in stablecoin regulation after the fall of the Terra stablecoin rocked the entire market. Not just Terra investors but the entire crypto domain suffered due to that implosion. Right now to deal with the economic complexities, Kraken is shutting down operations in Japan. More crypto businesses will follow the same course if the condition of the crypto market is not altered.