News

Kraken Ceases Operations in Japan

0 Comments

Kraken is the latest exchange based in Japan to close shop. In a statement, the US-based cryptocurrency exchange cited the high cost of doing business in the country as the reason for the move. The company, however, says it may consider returning in the future.

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

Kraken

The suspension only affects Japanese residents.

“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,” the statement continued.

The move comes amid heightened regulatory scrutiny in Japan, one of the biggest cryptocurrency hubs in the world.

Two other exchanges voluntarily wound up in March after being issued improvement orders by the Financial Services Agency (FSA).

Binance, the fifth largest exchange in the world by market capitalisation was recently ordered to stop operations. The exchange was yet to obtain a license to operate in the country.

Strict Controls

Exchanges are required to implement strict controls to prevent cyber attacks and money laundering. The FSA regularly conducts physical inspections to ensure compliance.

A massive hacking of Coincheck in January that resulted in the loss of $534 million worth of tokens prompted authorities to act tough on exchanges. This was the biggest heist in history and it was the second time the exchange was hit in less than a year.

Bitcoin

In 2014, Mt Gox, then controlling 70% of all Bitcoin transactions was hacked resulting in the loss of 850,000 worth $450,000 at the time. The company declared bankruptcy soon thereafter. 200,000 bitcoins have since been recovered.

At least two exchanges were suspended for one month in March for failing to meet standards. Kraken ranks eleventh with a 24-hour volume of $172,420,685 according to data from CoinMarketCap. Like Binance, Kraken did not have an operating license.

Despite the crackdowns, Japan remains a relatively cryptocurrency friendly jurisdictions worldwide.

Leave a Reply

avatar
  Subscribe  
Notify of
close-link

Risk Warning: Investing in digital currencies, stocks, shares and other securities, commodities, currencies and other derivative investment products (e.g. contracts for difference (“CFDs”) is speculative and carries a high level of risk. Each investment is unique and involves unique risks.

CFDs and other derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how an investment works and whether you can afford to take the high risk of losing your money.

Cryptocurrencies can fluctuate widely in prices and are, therefore, not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Past performance does not guarantee future results. Any trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Your capital is at risk.

When trading in stocks your capital is at risk.

Past performance is not an indication of future results. Trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Prices may go down as well as up, prices can fluctuate widely, you may be exposed to currency exchange rate fluctuations and you may lose all of or more than the amount you invest. Investing is not suitable for everyone; ensure that you have fully understood the risks and legalities involved. If you are unsure, seek independent financial, legal, tax and/or accounting advice. This website does not provide investment, financial, legal, tax or accounting advice. Some links are affiliate links. For more information please read our full risk warning and disclaimer.