After receiving legal approval to operate in Abu Dhabi less than a year ago, the cryptocurrency exchange Kraken has decided to shut down its Abu Dhabi headquarters. In addition to shutting down its Abu Dhabi office, Kraken has laid off eight employees from its Middle East and North Africa (MENA) section.
It appears that Kraken has decided to close its office and stop supporting the dirham, or AED, due to the fact that a spokesperson confirmed the closure.
There was also a report by the representative that existing users in the region will be able to access the platform with other fiat currencies. Moreover, some staff members will remain in the region after the transition is completed, with Kraken’s Middle East and North Africa managing director Benjamin Ampen probably leaving after the transition is completed.
Kraken has decided to close down operations in the Middle Eastern region due to the crypto winter. It is predicted that layoffs will reduce Kraken’s size to what it was before 2021, when the exchange rapidly grew. Powell announced in September that he would retire from the exchange as CEO but remain a board member.
It is also important to note that Kraken left Japan as of January 31, which marks the company’s second exit from the important Asian economy since April 20. Based on “current market conditions in Japan” and a “poor crypto market globally,” the company explained in December that the action was part of resource allocation.
Several days prior to the collapse of the crypto market in April 2022, the exchange had been granted a license to provide services on the Abu Dhabi Global Market and the international financial center of Abu Dhabi.