Crypto exchange Kraken to stop operations in Japan

[krishnaverma]

Link to the news:
https://www.reuters.com/technology/crypto-exchange-kraken-stop-operations-japan-2022-12-28/

They might not have been comfortable with the country stance and moves in regard to crypto. Good news is that users are given sufficient time to withdraw their assets.

[DaveF]

Link to the news:
https://www.reuters.com/technology/crypto-exchange-kraken-stop-operations-japan-2022-12-28/

They might not have been comfortable with the country stance and moves in regard to crypto. Good news is that users are given sufficient time to withdraw their assets.

Unless I am misreading what they say people have until the end of January to withdraw. 35 days is really not a lot of time, 60 to 90 days would be a lot more reasonable.
There are people who do not spend a lot of time dealing with their crypto, despite what those of us here do.
Vacations / traveling and so on, people are busy. I can see some people not paying attention and then having to go through hoops to get their money back.

Yeah, not you keys not your coins, I keep saying that but still people are people and they keep funds on exchanges.

-Dave

[YOSHIE]

They might not have been comfortable with the country stance and moves in regard to crypto.

Yes, we already know that Kraken exchange wants to stop its operations in Japan, naturally in Japan there is competition with various crypto exchange companies operating there, after all Kraken is one of the exchanges based in the US at the moment, not a native japanese crypto exchange.

In my opinion, there are many things that have caused the Kraken exchange to stop operating in Japan, maybe one of them is that the digital currency/crypto business in Japan is currently sluggish, might be bad for Kraken right now, they have over a thousand employees, or they can't afford to pay employee salaries by stopping operations in Japan, maybe it's a bankruptcy anticipation step.

[LeGaulois]

The article isn't saying everything and the way it's written may mislead people.

Until 31 January isn't really a decision from Kraken but rather in conformity with the Financial Services Agency guidelines.
So no choice, otherwise I am sure that the company would have granted a longer delay

After 1st February, if people haven't transfered out their cryptos and fiat themselves, it will be automaticaly sold/converted in JPY and then transfered to a guaranty account at the Legal Affairs Bureau (according to legal requirements). So, they will have to contact this "Legal Affairs Bureau" to get back their money

That's what I understand from the Kraken Japaneese blog post

[stompix]

The article isn't saying everything and the way it's written may mislead people.

Yeah, there is no reason to really panic, not only will those funds be accessible but also, quite funny, Kraken has a lot of experience in the field, this is the second time they are leaving Japan, after all, the first period they were active was 2014-2018, now it's 2020-2022, so probably in 2024 they will be offering their services again for a year, just in time for the halving!
Japan has some serious capital control laws, the whole MtGox fiasco has made them look for more regulations, higher security standards which are more costly for companies, with this bear market and probably lack of interest it's the obvious choice, you either adapt or you go out Celsius style!

Of curse, just because this might go smoothly it doesn't mean to trust Kraken with all your coins and leave them there for months!

[Darker45]

It's not about Kraken being uncomfortable with Japan's stance on crypto. They were welcomed there, in the first place. It's just that business was no good. There's no reason to stay when the operation is not profitable. If the revenue remains lower than the cost of running the exchange, despite the 30% layoff implemented just a month ago, there's no point insisting to continue. I guess this is a better decision.

When the market recovers in the near future, re-entry is always an open option. They're already considering this as early as now.

Ironically, though, just as Kraken is about to exit due to the downturn of the market, its rival Binance is about to re-enter after 4 years. Binance has acquired "Sakura Exchange BitCoin (SEBC), a Japan Financial Services Agency-licensed business," paving its way for the re-entry.^[1]
The two exchanges must have different, even opposing, outlook or appreciation of the Japanese market.

[1] https://ambcrypto.com/crypto-exchange-kraken-set-to-leave-japan-thanks-to-these-reasons/