Cryptocurrency exchange Kraken has closed its office and Abu Dhabi and suspended support for transactions in the United Arab Emirates's currency (dirhams) as crypto companies are still readying for the worse, Bloomberg reports, citing a spokesperson for the company.
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Although the exchange laid off most of its team located in the Middle East and North Africa, Kraken plans to keep its presence in MENA with several employees. The spokesperson added that Benjamin Ampen, Managing Director at Kraken MENA, will stay with the exchange during the reorganization process, but will likely leave the company after that.
Kraken was the first crypto exchange that won a local license from Abu Dhabi Global Market (ADGM) in April 2022 to operate a regulated crypto trading platform in the financial free zone.
In January, Kraken also suspended its services in Japan, blaming a "weak crypto market" on the global scale. With the move, Kraken wants to "prioritize resources and investments in those areas that align with our strategy and will best position Kraken for long term success."
But Kraken isn't the only US-based cryptocurrency exchange, which is downsizing its business amid market turmoil. In early January, Coinbase also laid off 20%, hoping to reduce operating expenses down by 25% in Q1, 2023.
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