Trade for existing customers in Japan will be suspended in mid-June, and these customers must withdraw their funds by the end of this month. Kraken entered the market in October 2014. Last month it said: “IIT is impractical to continue service for Japan residents.”
The 13th biggest stock exchange in the world did not go into details about why it is leaving Japan, but income does not seem to be a problem. The price of Bitcoin now vacillates around 9,000 dollars, which is less than half of the historical maximum achieved in December. But the daily trading volume in Bitcoin, which is necessary for the exchange, has not gained a corresponding decrease.
The market supposes that the costs connected with compliance with the new rules in Japan are the main reason for the abandonment of Kraken. The Japanese crypto community was stressed by a shock in January, when Coincheck incured a record hack, losing NEM coins at $ 530 million. On April 16 Monex Group purchased Coincheck for 33 million dollars. Later Coincheck declared that for the fiscal year to March operating gains were $ 491 million. And that’s letting the fact that it compensated users 47.3 billion yen ($ 432 million) for hacking NEM.
Because Japanese regulators started to seriously conduct this industry, commercial cryptocurrency exchanges in the country launched a self-regulatory body to restore the traders` trust. Though Coincheck’s profit displays that the exchange of cryptocurrencies can be highly profitable.
Suspending services for Japan residents will allow us to better focus on our resources to improve in other geographical areas. After we have had a chance to better catch to our rapid growth, we will consider the possibility of resuming service for Japan residents
US-based Cryptocurrency Exchange
The protection of retail investors is the highest priority for regulators, when new forms of assets begin to work. Despite this Asian regulators need to find a balance before more exchanges lose patience and flee to other regions.