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US-based cryptocurrency exchange Kraken quits Japan

[TOKYO] US-based cryptocurrency exchange Kraken will stop its trading services in Japan, citing rising costs of doing business there, Bloomberg reported on Tuesday.

The exchange plans to exit Japan by the end of June but it may come back in the future, Bloomberg said, citing an emailed statement.

"Suspending services for Japan residents will allow us to better focus on our resources to improve in other geographical areas," Kraken was quoted as saying in the report.

The move will impact only residents of Japan and not Japanese citizens or businesses based out of the country, Bloomberg reported.

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Kraken did not immediately respond to Reuters' request for comment outside regular US business hours.

Kraken's exit comes amid regulatory pressure for tighter standards at Japan's cryptocurrency exchanges after the US$530 million theft of digital money from Coincheck earlier this year when a hacker used malware to break into its network before stealing an encrypted key and withdrawing digital coins.