Kraken Shuts Down Abu Dhabi Office Amid Industry Struggles

US Crypto Exchange Cites FTX Collapse and Global Market Downturn as Reasons for Restructuring Operations

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Less than a year after securing a license to operate in the region, cryptocurrency exchange Kraken announced on Thursday that it is closing its offices in the UAE capital Abu Dhabi.

A spokesperson for the exchange said the decision was taken as Kraken seeks to focus more of its operations following the blow to the digital asset sector from the collapse of FTX, Reuters reported.

The US company has said since last year that it plans to reduce its workforce by 30%, or by around 1,100 employees, as rising interest rates and concerns about an economic downturn have shaken confidence in the cryptocurrency industry.

The collapse of the FTX exchange has exacerbated the problems in the industry, causing a domino effect of bankruptcies, with several large companies having so far filed related petitions with regulators.

Kraken’s decision was first revealed by Bloomberg News.

Meanwhile, in December, Kraken said it would cease operations in Japan, citing market conditions in the country and a weak cryptocurrency market globally.

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