Kraken, a San Francisco based exchange company has announced that it is shutting its doors for investors in Japan. According to a statement released on Tuesday, the company said it will cease to provide exchange services to Japanese residents, with a planned cutoff date for final withdrawals penciled in for the end of June. The company also added that overseas Japanese investors who use domestic banks will still have access to trading activities in the local market.
While the company put the decision down to “the costs and resources required to maintain service,” it’s notable that the exchange is currently not among trading platforms registered with the Financial Services Agency (FSA), Japan’s financial watchdog. Kraken’s move to bar Japanese investors comes at a time when the FSA is beefing up efforts to scrutinize exchanges offering services in the country following the hack of $530 million-worth of the NEM cryptocurrency from the Coincheck exchange in January.
In other news, Binance – the world’s largest cryptocurrency exchange by trading volume, has already received a warning letter from the FSA, ordering it to halt operations in Japan since the firm is not fully registered with the agency.