- Kraken, a San Francisco based digital asset exchange company on 8th September announced that they are returning to Japan with their services
- Financial Services Agency (FSA) strictly prohibits firms operating without a legal license
- Kraken will be providing spot trading for the 5 major cryptocurrencies, namely Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC)
Kraken, a San Francisco based digital asset exchange company on 8th September announced that they are returning to Japan with their services. Today in their latest blog post they informed the cryptocurrency community about the start of their services in Japan from 18th September. The cryptocurrency exchange, Kraken suspended its operations in the Japanese market in April 2018 and After which they expanded their operations in the other parts of the world.
Kraken in their blog post st ated that they have been planning to re-enter the Japanese market from 2018. After registering Kraken as a Crypto Asset Exchange Service Provider under the Payment Services Act on September 8, the company is legally ready to resume operation in the country. In September 2018, Kraken launched Payward Asia its Tokyo-based subsidiary to assist Kraken in complying with the local accords and governance protocols in order to re-enter the Japanese market.
This was a way around to return to Japan, as the Financial Services Agency (FSA) strictly prohibits firms operating without a legal license. The strict procedure to obtain a legal operating license is another hindrance and the main reason for the Japanese market being dominated by domestic firms.
Why Kraken left in 2018
In 2018, Kraken while suspending their operations in Japan stated, the cost of maintenance was rising and it wasn’t economically feasible for them to continue. Though physical operations were suspended it only affected the locals from the country, not the native residents who currently reside in different parts of the world. At the time of leaving Japan as per CoinMarketCap, Kraken was the 10th largest exchange in terms of the 24-hour trading volume.
What services Will Kraken Provide?
From 18th September 10:00 am JST residents of Japan will be able to create their accounts on their website. Although the exchange has not yet specified exact dates as to when the trading and funding will begin, it is expected to start late September to early October. Users previously registered with Kraken are also required to create new accounts.
In the initial stage, Kraken will be providing spot trading for the 5 major cryptocurrencies, namely Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC). These coins could be traded in both crypto-crypto and JYP-crypto trading pairs. Kraken is planning to add more cryptocurrencies and services as they progress further.