The US-based cryptocurrency exchange, Kraken decides to pull itself off from the Japanese market.
Kraken is recognized for largest Bitcoin Exchange in euro volume and liquidity and has been actively functional since 2011, after its establishment in San Francisco.
Kraken was functional in Japan from October 2014.
In an email to Bloomberg, it said, it plans to wind up by June end.
Certainly, rising cost of doing business in Japan remains the reason for this decision of the company. But still, the company insinuates to return to the country in future.
In a statement, the company said, “Suspending services for Japan residents will allow us to better focus on our resources to improve in other geographical areas. This is a localized suspension of service that only affects residents of Japan and does not impact services for Japanese citizens or businesses domiciled outside of Japan.”
Crypto Exchange Regulation in Japan
Japanese administration and legal system are supporting in its best possible manner. Japan being among the initial countries to legalize payment of goods and services through bitcoin.
But unfortunately, this year seems to be very tough for cryptocurrency trading markets of Japan.
Because after the hack of Coincheck at the start of the year with 500$ million NEM being stolen. And now, Kraken decision to quit from Japan, even after its allowance to operate without a license is a matter of concern.
This is in contradiction to rule of licensing of cryptocurrency exchanges or remittance operators.
Earlier this month, lawmakers initiated steps to legalize initial coin offering. Which on the other hand is not legalized in countries like China & South Korea.