Affected users should withdraw their funds by January 31, 2023, Kraken said, adding that deposits will be suspended until January 9, 2023.

Kraken will shut down its operations in Japan and deregister with the Financial Services Agency on January 31, 2023, according to a Dec. 28 announcement.

According to the exchange, the decision was made as part of an effort to prioritize its overall business. The company said that “current market conditions in Japan coupled with a weak cryptocurrency market” made its operations in the country unsustainable.

Kraken said affected users should withdraw their funds by January 31, adding that deposits would be suspended until January 9 — users would still be able to trade on the platform until the shutdown.

The exchange said withdrawal restrictions will be lifted in January so that users can transfer funds to external wallets or liquidate their portfolios to withdraw funds from domestic banks.

Meanwhile, digital assets staked through Kraken can be unstaked and transferred to other platforms. The exchange said it will provide more information on the unstacking process for staked Ethereum ( ETH ).

Kraken had previously exited Japan in 2018, citing the rising costs of doing business in the country. However, the exchange re-entered the Japanese market in 2020.

Following the FTX debacle, Kraken announced that it would be laying off approximately 1,000 employees from its global workforce due to challenging market conditions.