Virtual Currency Exchange Kraken To Quit Japan

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Kraken

One of the biggest virtual currency exchanges in the world, Kraken, has announced that it is exiting Japan. The digital currency exchange did not however specify the exact dates in which it would suspend trading and funding of accounts belonging to residents of the Asian country.

“This is a localized suspension of service that only affects residents ? Clients residing outside Japan who have access to our Japan banking partners will continue to have access and will still be able to trade our JPY markets,” Kraken wrote in a press statement.

Regulatory scrutiny

Kraken?s services were introduced in Japan four years ago and the suspensions comes in the wake of the country?s regulators ramping up their oversight efforts following the hacking of Coincheck cryptocurrency exchange earlier in the year leading to the loss of $500 million.

Following the hacking of Coincheck regulators in Japan have been in crackdown efforts of a couple of unlicensed exchanges. Last month regulators sent a warning to the biggest virtual currency exchange in the world, Binance. Per media reports there have been several digital currency exchanges which have left Japan and this includes Tokyo Gateway and Mr. Exchange.

The digital currency exchange has left open the possibility that it could resume operations in Japan in the future. Various virtual currency exchanges have been licensed to operate in Japan but Kraken had been given a waiver and was operating without one.

Top crypto country

For a long time Japan has been one of the top countries in the world with regards to the trading of virtual currencies. Last year between October and November 40% of the trading in bitcoin across the globe was carried out in Yen per a report by the Nikkei Asia Review.

Japan was also among the first countries in the world to have bitcoin designated as legal tender. The third-largest economy in the world also possesses one of the world?s most well-established cryptocurrency regulatory environments.

The exit of Kraken from Japan coincides with Yahoo Japan announcing that one of its subsidiaries, Z Corporation, is buying a 40% stake in BitARG Exchange Tokyo which will be launched in fall. The stake is worth between two billion yen and three billion yen.

Dippli is an independent media outlet that covers the current events in the crypto space. Got breaking news or a story to share? Then feel free to contact us at news@dippli.com.

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