Kraken is a Crypto exchange which started operating in Japan in October 2014. The Japanese Financial Services Agency (FSA) had given Kraken the status of a “deemed dealer.” So the company was allowed to operate however the application is yet to be approved. Ever since Japan witnessed the hacking of Coincheck, FSA has been looking keenly and checking all crypto exchanges and has launched on-site inspections of all deemed dealers.Kraken applied for a license but it is yet to be approved.
On Tuesday, the company said that it is suspending all of its services in Japan. This is not the first company to do so. Kraken is actually seventh in line with others like Tokyo Gateway, Mr. Exchange, Raimu, Bitexpress, Bit Station, and Campfire before it. Initially, there were 16 deemed dealers in Japan but a growing number of them have been withdrawing their applications, citing high costs.
The exchange announced to the Japanese residents- “The exact dates for suspending trading and funding have not yet been determined,” It also mentioned that the last day of deposits will most probably be “around mid-May,” the last day for trading is “around mid-June,” and the last day for withdrawals is “around end-June.”
Kraken detailed: “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.”
Kaken further said that “The decision involved careful consideration of revenue against the costs and resources required to maintain service,” and “suspending services for Japan residents will allow us to better focus on our resources to improve in other geographical areas.” It assured that the citizens of Japan who are 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,”
“We deeply regret suspending this long-standing relationship and hope to resume services for Japan residents in the future…at the present time, it is impractical to continue service for Japan residents…After we have had a chance to better catch up to our rapid growth, we will consider the possibility of resuming service for Japan residents.”