Kraken will be pulling operations through one of the biggest markets for cryptocurrency trading.
The San Francisco-based cryptocurrency exchange said Tuesday which which would likely withdraw services in Japan due to rising costs of maintaining its business there, nevertheless indicated which could return from the future. which added which the suspension of activity in Japan would likely only affect Japanese residents, not Japanese customers outside of the country.
“Suspending services for Japan residents will allow us to better focus on our resources to improve in additional geographical areas,” Kraken said in a statement on Tuesday.
“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.”
Kraken will be the 10th largest exchange by 24-hour trading volume, according to industry website CoinMarketCap, trailing behind Coinbase’s GDAX.
A cryptocurrency comparison website called CryptoCompare estimates bitcoin trades in Japan’s currency account for almost 60 percent of all trading volume. The country officially recognized bitcoin as legal tender last year, along with carries a registration process for cryptocurrency exchanges looking to operate from the country.
nevertheless regulators are slightly more cautious from the wake of a cryptocurrency heist which saw more than $500 million worth of digital tokens stolen through crypto exchange Coincheck in January. which will be thought to be the biggest theft of cryptocurrencies, surpassing the $400 million in bitcoin lost by cryptocurrency exchange Mt. Gox in 2014.
Last month, Binance, the biggest exchange by volume, was warned by Japan’s Financial Services Agency against operating from the country without an exchange license.