Kraken has just made headlines recently by taking a major step. This cryptocurrency exchange has decided to suspend its services to the Japanese market. At the moment the exchange has not released the exact date on which it will suspend its services. Apparently, it seems that mid-June may be the last date to trade using this exchange.
This suspension will only affect the Japanese individuals who are based in Japan. It will not affect the Japanese residents who are located outside Japan. The Japanese residents who are based outside Japan will be able to trade the JPY market without any trouble.
Now, the major reason behind the suspension seems to be the revenue against the cost. Apparently, it seems that Kraken has to use many resources to run its services in Japan and this may be a problem for the exchange.
It seems that Kraken has still not been able to stabilize its operation in the Japanese market though it has been operating since 2014. Now, what is alarming here is that Kraken has still not been able to acquire the license from the Japanese Financial Service Agency.
The Financial Service Agency has become quite strict about licenses since the hacking of Coincheck. In fact, the FSA is inspecting all the exchanges that are not working as per the standard policies of FSA.
Kraken has also not been able to live up to the expectations of FSA, and this is yet another setback for this exchange. It is never viable to continue operation without winning the trust of the financial authorities. Kraken has also withdrawn its application submitted to the Financial Service Agency.
This is surely bad news for all those people who have been loyal users of this exchange, and they will not be happy with this decision for sure. However, all is not lost, and there is a possibility that things may improve in the future.
Suspending the services in Japan may be a temporary decision on the part of the exchange. Currently, Kraken needs to put in a conscious effort to review its policies and address the loopholes. This is the best way to win the trust of the authorities and re-establish its place in the Japanese market. This may seem to be a difficult endeavor but it is not an impossible task by any means at all.
Let us hope that Kraken reconsiders its decision of suspending its operation in the local Japanese market and improves the shortcomings.