Crypto exchange Kraken will terminate its services in Japan amid a company wide-restructuring effort.
A Wednesday announcement on a Japanese government publication disclosed that Kraken’s Japan-based subsidiary Payward Asia Inc will shut down its crypto exchange business on Jan. 31.
The firm plans to ask customers based in the country to transfer their crypto off the exchange into private wallets, or withdraw it in fiat currency. Users will have until Jan. 31 to move their funds off Kraken, when the company plans to deregister from Japan’s Financial Services Agency (JFSA).
Kraken cited current market conditions and a weak global crypto market as the reason behind its decision to shut down operations in Japan.
“The decision is part of Kraken’s efforts to prioritize resources and investments in those areas that align with our strategy and will best position Kraken for long-term success,” the firm said in a Japanese blog post to its website.
This is the second time Kraken has pulled out of the Japanese market. The same subsidiary operated between 2014 and 2018. The first time it sunset the Japan-focused business, it said it wanted to focus its resources on improving in other geographical areas.
The move also follows a Nov. 30 announcement, where the crypto exchange said it plans to lay off 30% of its workforce.
“Since the start of this year, macroeconomic and geopolitical factors have weighed on financial markets. This resulted in significantly lower trading volumes and fewer client sign-ups,” said Kraken co-founder Jesse Powell at the time.