Crypto exchange Kraken announced on Wednesday that it will shut down in Japan as of January 31, 2023, citing efforts to prioritize resources.
“Current market conditions in Japan in combination with a weak crypto market globally mean the resources needed to further grow our business in Japan aren’t justified at this time,” Kraken said in a blog post.
Kraken added that the move will “have no material impact” on its overall business. The San Francisco-based exchange is currently the 25th largest exchange by 24-hour trading volume, according to industry website CoinMarketCap.
Earlier this month, Kraken announced plans to cut 30% of its global workforce or about 1,100 people. According to Kraken CEO Jesse Powell, the company initially tripled its workforce due to the booming crypto ecosystem during the bull market, but the current job cuts means that the company’s headcount will return to where it was 12 months ago.
The announcement marks the second time Kraken is leaving Japan – it previously withdrew services in 2018, citing the high cost of maintaining operations there.