Kraken, a crypto exchange in the United States, announced on Wednesday that it will halt operations in Japan next month, citing the country’s present market conditions and a weak global crypto market.
According to a report by Reuters, by January 31, Kraken will no longer be registered with the Financial Services Agency. At that point, customers will need to withdraw their fiat and cryptocurrency assets, according to a statement from the company.
Kraken stated that it is well-funded to ensure that all concerned clients can withdraw their assets as soon as possible.
Kraken announced last month that it would downsize its employment by 30%, or approximately 1,100 personnel, as market conditions hampered demand for digital assets.
Bitcoin, the most valuable cryptocurrency, has lost 60% of its value this year, while the overall crypto market has decreased by $1.4 trillion due to the demise of Sam Bankman-FTX Fried’s business, Celsius, and so-called ‘stablecoins’ terraUSD and Luna, noted the report.