Problems continue for major digital currency exchange Kraken. After forfeiting its position in Japan, closing its offices there, and letting all employees go in that division, the company has now had to do the same for its Abu Dhabi (located in the United Arab Emirates or UAE) location.
Kraken Will No Longer Be in the UAE
A spokesperson for Kraken has released the following statement:
Kraken regularly reviews its business lines to ensure we’re employing resources globally to best achieve our mission of accelerating the adoption of cryptocurrency.
In addition, the exchange is now also suspending all support for customers – both retail and institutional – in that region of the world. However, while trading is likely to be off limits, clients in the Middle East will still retain access to Kraken’s many other services.
Kraken was one of the first major digital currency institutions to make its way to the UAE, having done so last year. The country has been on a crusade of sorts to try and attract new digital currency companies and businesses from all over the world, and for the most part, the region has been relatively successful in its endeavors.
Sadly, the UAE couldn’t have predicted that the crypto crash of 2022 would be as devastating as it was, nor could it have predicted that the crash would have affected virtually every single major crypto enterprise out there. As of late, we have heard endless stories of companies having to either close their doors or let go of loads of employees, some of the biggest examples being Gemini and Coinbase.
As two of the largest and most well-known digital trading platforms in the world, both companies were forced to recently undergo their second series of layoffs, with both enterprises letting go of at least 1,000 employees each.
Another problem stems from the fact that many of the crypto businesses that now call the UAE home invested in FTX, the once golden child of the industry. Having first arrived on the scene in 2019, the company rose to prominence by the time 2022 came about, and the firm was easily one of the five largest digital currency trading companies across the globe. Its founder – Sam Bankman-Fried – was lauded as a genius, and his net worth was in the billions prior to the collapse of the firm.
Everyone’s Tied to FTX
Now, he is awaiting trial at his parents’ California home after it was alleged that he used customer funds to invest in real estate and pay off loans.
It is unfortunate Kraken is having to leave Abu Dhabi after less than 12 months in the region. Clearly, the company is dealing with some harsh realities as are so many other firms that thought 2022 was going to be a continued era of growth for crypto.