Kraken, one of the longest-active cryptocurrency exchanges, has announced that it will be distancing itself from Japanese investors by not allowing them to take part in their services. A statement on their website reveals that the deadline for residents to cease trading is the end of June.
Kraken made it clear that this is an issue that relates to Japanese banks as their statement explains that Japanese residents who are in other countries and are using domestic banks will still be able to trade.
This follows a recent trend of exchanges distancing themselves from Japan with the country losing several large-scale exchanges already, including Binance, which has relocated. This move stems from how Japan’s FSA is handling the process of regulating the industry— every exchange must be checked and verified by the FSA for it to receive a license.
This is not to say that regulation is a bad thing. In fact, it could be a positive step for cryptocurrency as it shows that Japan’s executive bodies are taking the industry seriously. Recently, Ripple has requested that the UK should treat cryptocurrency in a similar manner. On the flip-side, there is also a growing interest in exchanges becoming self-regulating as some find bodies like the FSA to be too intrusive.
Kraken’s statement suggests that this is not designed to be a permanent abandonment of Japan. After they have increased their growth, Kraken noted that they would consider the ‘possibility of resuming service for Japan residents.’ No specific time-frame was given as to when they will reconsider.
Kai is a cryptocurrency copywriter and professional trader. He can often be found investigating various cryptocurrencies, whitepapers, and blockchain technologies. Kai has been a professional writer for 5+ years, and has invested in 50+ different coins and tokens. He also currently studies Law and Philosophy at university.