San Francisco-based cryptocurrency exchange Kraken is reentering the Japanese market after nearly two years. The company’s subsidiary Payward Asia recently received a license as a crypto-asset exchange operator under the Payment Services Act.
Kraken gets ready for Japan again
Kraken is launching its crypto services back for Japanese clients after spending nearly two years away from the lucrative market. The company was forced to step out after regulators brought extensive oversight into the industry. The company’s subsidiary Payward Asia recently received a crypto-exchange operator license under the Payment Services Act. The firm has also seemingly secured membership of JVCEA or Japan Virtual Currency Exchange Association. The self-regulatory organization in the country oversees the industry.
The initial product lineup for Payward Asia will be limited to spot trades (crypto to crypto and fiat to crypto). It would be listing five major assets in the market- Bitcoin, Ethereum, Ripple, Bitcoin Cash, and Litecoin. It suggests that more features will be available to users soon. The service is scheduled for a mid-September launch. The exchange will also provide some more details at a later date. Residents can open an account with Payward Asia to start using the platform. Existing customers will also need to register as there will be no transfer of accounts.
Kraken’s previous exit from the market
Kraken was one of the few platforms operating in Japan that were allowed to offer cryptocurrency services without a license in the country. Meanwhile, it was trying to meet the rules and regulations that established Bitcoin as a nationwide accepted method of payment. However, as the cost of maintaining a business in Japan kept increasing, the exchange withdrew its participation from the Japanese market. However, it suggested at the time that it could return at a future date.
The move came right after regulators in Tokyo grew more cautious of the crypto industry and started tightening regulations. The iron grip of Japanese regulators was inspired by a $540 million crypto heist at local exchange Coincheck, which was one of the biggest hacks at the time.