The US-based cryptocurrency exchange Kraken will cease the trading operations in Japan.
Among the most popular cryptocurrency exchanges, Kraken has announced its break up with Japan. In the announcement, the exchange hinted that the decision is not permanent, but it’s necessary for the moment.
The main reason being that Japan became an expensive market and that the operational costs have increased substantially.
Another rumored factor for this break-up could be the increase in regulations for the cryptocurrency market.
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,“ was cited Kraken by Bloomberg.
While the American exchange received the approval of the regulators to function without a license in Japan, some reports are suggesting that the exchange is not very popular in the country.
In comparison with the BTC/USD volumes, Kraken is struggling with insignificant trading volumes of 1% per day for the BTC/JPY which can translate in less than $170,000.
Their competitors, bitFlyer, Coinchek and the Chinese exchanges which operate in Japan have daily trading volumes over $100 million for the BTC/JPY. bitFlyer has become in the past months one of the most profitable crypto exchanges in Japan. Earlier this month CryptoStreet reported that the exchange is looking to access the European market
While leaving a very promising but also competitive market, Kraken declared that the decision is not permanent. The company did not reveal the exact date of the exit, but spokespeople proclaimed that it would be sometime in June 2018.
The exchange expects to end their presence in Japan by the end of June. However, the company is leaving the door open to returning to Japan one day.