Kraken Closes Its Crypto Trade Platform Service In This Country, Bear Market Effect?

Kraken crypto exchange. (Photo; Doc. Crypto Economy)

JAKARTA Crypto trading company Kraken has reportedly stopped its services in Japan. Kraken revealed the reason, namely the declining condition of the Japanese and global crypto markets.

Therefore, Kraken decided to stop its business development in the country. Kraken announced on Wednesday, December 28, 2022.

Kraken decided to "stop its operations in Japan and cancel registration from the Financial Services Agency (JFSA) on January 31, 2023."

The company explains that the decision to leave the Japanese crypto market is part of an "attempt to prioritize resources and investment" in areas that are in line with the company's strategy and "will position Kraken for long-term success."

Crypto market conditions in Japan today combined with globally weak crypto markets mean the resources needed to further develop our business in Japan are not justified at this time, added the announcement, reported Bitcoin.com News.

"As a result, Kraken will no longer serve clients in Japan through Paying Asia," the stock exchange confirmed. Pemad Asia Inc. operates Kraken services in Japan.

Kraken Generalizes Consumer Fund Revenue Until January 31

All the affected clients had until January 31 to withdraw their fiat and crypto holdings, the announcement added, noting that the deposit function would be removed on January 9. Kraken also assured customers that it was "fully funded to ensure all affected clients could withdraw their assets on time."

In 2022, it will be the worst year for the crypto market. The largest cryptocurrency by market cap, Bitcoin, has slipped at that of 20,000 US dollars per coin. The drop in BTC also dragged another drop in cryptocurrencies in the market.

The bearish market began in the collapse of Terra LUNA and UST in May. The collapse of the Terra ecosystem had a negative impact on other crypto companies including BlockFi, Three Arrows Capital, Voyager, Celsius, and so on. Meanwhile, FTX filed for bankruptcy in November 2022. It also dragged down the price of BTC and extended the crypto winter.