Kraken is leaving Japan due to high costs of doing business. This is momentous news and could be a trend setter. Kraken, a cryptocurrency exchange, has been doing business in Japan since 2014. Japan’s Financial Service Agency has began investigating crypto exchanges to provide regulatory oversight. Binance also has opened an office in Malta after it received a letter from Japan’s FSA for not being registered. With the increase attention cryptocurrency has received, it will be expected that more government regulation will be introduced across the world.
We expect 2018 to be the year of regulation in this space. The increased regulation in cryptocurrency is very different than in previous industries because it is a global currency and does not need to be located within a country’s borders. There will be more competition from less developed countries to attract these great innovative ICOs and exchanges. Kraken is smart to be leaving a high cost country and can be just as successful operating from cheaper, nearby countries.