Kraken Crypto Exchange to End Operation in Japan

Kraken Crypto Exchange to End Operation in Japan

Popular cryptocurrency trading platform, Kraken has announced that it will cease operations in Japan. Investors in Japan will no longer be able to use San Fransisco-based Kraken's cryptocurrency services.

According to an e-mailed statement, Kraken, a cryptocurrency exchange which has been in operation since 2014 in Japan will put an end to its operations in Japan.

The exchange will contact its Japanese clients with exact dates as soon as they are known. The company has stated that they would be ending services for Japanese residents over rising business costs.

As per the statement emailed by Kraken, traders will be able to deposit till mid-May, trade till mid-June and withdraw till late-June. Resources are an especially important consideration for us at this time due to our exponential growth in recent months.

"Suspending services for Japan residents will allow us to better focus on our resources to improve in other geographical areas", the company said.

Although Kraken says the closure is necessary to allow for a future expansion, you do have to wonder if there's another reason behind the decision.

Following the Coincheck heist, the Financial Services Agency (FSA) - Japan's top financial watchdog - have disciplined several exchanges for not actualizing proper security measures. Given the interest in Japan, Kraken's decision is set to affect both the exchange and its customers residing in Japan.

So, is the crypto exchange Kraken getting out of Japan while it still can before it too gets a notice from the FSA?