Kraken closes its Abu Dhabi office, downsizes the global workforce, and ceases operations in Japan due to weak crypto market conditions and increased industry challenges.
The ongoing hardships the crypto market faces have caused a lot of havoc. Cryptocurrency exchange Kraken joins the several crypto exchanges that have been severely hit.
Kraken officially closed its Abu Dhabi office less than a year after winning a local license. The exchange has laid off most of its team focused on the Middle East and North Africa, affecting around eight employees.
A spokesperson stated that clients in the region will still access the platform, although support for transactions in the United Arab Emirates currency is on halt. Customer deposits in dirhams will be automatically converted into dollars and can be withdrawn. Clients can also continue to use other fiat currencies supported by Kraken.
Also read; Coinbase Faces Another Hurdle, Stopping Its Operations in Japan
Kraken Downsizes Globally
The closure of the Abu Dhabi office forms part of a larger retrenchment strategy by Kraken. In December 2022, the exchange said it would cease operations in Japan, citing the country’s market conditions and a weak global crypto market.
In November 2022, Kraken announced plans to cut 30% of its global workforce, equivalent to around 1,100 employees, due to market turmoils.
More companies followed suit and retrenched their workers. Exchanges like Coinbase, Crypto.com, and Gemini had to adjust their workforce due to turmoil in crypto markets and thin volumes.
The bankruptcy of FTX set the dominoes falling across the sector. Despite these challenges, Kraken plans to keep several employees based in the MENA region, with Benjamin Ampen, Managing Director for the region, staying on to assist with the transition.
[…] Also read; Crypto Exchange Kraken Downsizes Operations Abu Dhabi […]