Crypto exchange Kraken suspends operations in Japan by Reuters

©Reuters. FILE PHOTO: The Kraken Cryptocurrency Exchange logo can be seen in this illustration taken on July 28, 2022. REUTERS/Dado Ruvic/Illustration

(Reuters) – US-based crypto exchange Kraken said on Wednesday it would cease operations in Japan next month, citing current market conditions in the country and a weak crypto market globally.

Kraken will de-register from the Financial Services Agency (JFSA) by Jan. 31, by which time customers would be required to withdraw their fiat and crypto holdings, it said in a statement.

Kraken said it was fully funded to ensure all affected customers could withdraw their assets in a timely manner.

Last month, Kraken said it would reduce its workforce by 30%, or about 1,100 employees, as tough market conditions have paralyzed demand for digital assets.

the preeminent cryptocurrency, has lost 60% of its value this year, while the broader crypto market has shrunk by $1.4 trillion, fueled by the collapse of Sam Bankman-Fried’s FTX empire, Celsius and alleged “stablecoins” TerraUSD and Luna was crushed.