According to reports, cryptocurrency exchange, Kraken announced in an emailed statement that it is set to terminate its services in Japan.
In the statement, Kraken said that its ruling to end services in the country is based on the skyrocketing costs of doing business there. The cryptocurrency exchange is currently ranked number ten on the top crypto exchanges by 24-hour trading volume on CoinMarketCap, with about $188 million in trades on the day before press time.
Kraken, which it has been running its services in Japan since October 2014 will shut down trading in the country around the end of June 2018. Given its reason for leaving the country, however, the company did not rule out re-entering the market in the future:
“Discontinuing services for Japan residents will let us better focus on our means to develop in other geographical areas […] This is a confined suspension of service that only affects Japan residents and does not affect services for Japanese citizens or businesses located outside of the country.”
Earlier this year, Japan’s FSA (Financial Services Agency) started on-site inspections of the country’s 15 as-of-yet unregistered cryptocurrency exchanges after Japanese cryptocurrency exchange Coincheck was hacked and NEM worth $534 million stored on a hot wallet was stolen.
Due to these inspections, the Financial Services Agency issued business improvement notices to a total of eight exchanges and briefly suspended operations at three more.
Two Bitcoin exchange services in Japan chose to shut down rather than work with regulators for compliance, and cryptocurrency exchange Binance, ranked number one on CoinMarketCap.com for 24-hour trading volume, determined to open an office in Malta after getting a notice from the FSA for not being registered.