Cryptocurrency exchange Kraken is suspending all of its services to Japanese residents. The exchange has been allowed to operate in Japan while its application with the country’s financial regulator is being reviewed.
Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space
Kraken Pulling Out of Japan
Kraken announced on Tuesday the suspension of its services to Japanese residents. “The exact dates for suspending trading and funding have not yet been determined,” the exchange wrote, adding that tentatively the last day for deposits is “around mid-May,” the last day for trading is “around mid-June,” and the last day for withdrawals is “around end-June.” Kraken elaborated:
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. 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.
The exchange detailed, “The decision involved careful consideration of revenue against the costs and resources required to maintain service,” noting that “suspending services for Japan residents will allow us to better focus on our resources to improve in other geographical areas.”
Residents of Japan waiting on Mtgox distributions “will still be able to withdraw the funds through their Kraken account as a one-time payment, provided that this is approved by the court,” Kraken confirmed.
Rising Costs of Doing Business in Japan
Kraken has been serving Japanese residents since October 2014. It has applied for a license with the Japanese Financial Services Agency (FSA) but has not been approved. The exchange has been allowed to operate while its application is still pending as a “deemed dealer.”
However, since the hack of Coincheck,
