Cryptocurrency Exchange Kraken to Shutter Services in Japan

U.S.-based cryptocurrency exchange Kraken has announced it is shutting its doors for investors in Japan, citing operational costs.

AccessTimeIconApr 17, 2018 at 11:25 a.m. UTC
Updated Sep 13, 2021 at 7:50 a.m. UTC

San Fransisco-based cryptocurrency exchange Kraken has announced it is shutting its doors for investors in Japan.

According to a statement released on Tuesday, the company said it will cease to provide exchange services to Japanese residents, with a planned cutoff date for final withdrawals penciled in for the end of June.

Kraken added that overseas Japanese investors who use domestic banks will still have access to trading activities in the local market.

Further, victims of the notorious Mt Gox hack that took place in 2014 will be able to maintain their Kraken account for fund withdrawals should their payment from the ongoing bankruptcy case be approved at court.

While the company put the decision down to "the costs and resources required to maintain service," it's notable that the exchange is currently not among trading platforms registered with the Financial Services Agency (FSA), Japan's financial watchdog.

Kraken's move to bar Japanese investors comes at a time when the FSA is beefing up efforts to scrutinize exchanges offering services in the country following the hack of $530 million-worth of the NEM cryptocurrency from the Coincheck exchange in January.

Binance, the world's largest cryptocurrency exchange by trading volume, has already received a warning letter from the FSA, ordering it to halt operations in Japan since the firm is not fully registered with the agency.

Stop signal image via Shutterstock

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