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Kraken, one of the world’s largest cryptocurrency exchanges, has suspended its UAE currency operation to focus on its “most mature” markets just 10 months after its launch in the Abu Dhabi Global Market (ADGM).
In response to questions from Zawya, the crypto exchange said it remained in a strong position in terms of liquidity and solvency, with clients’ assets in full reserve; however, its dirham services will be suspended.
A spokesman said: “In light of current market and macroeconomic conditions, we decided that, for the time being, it was best to focus on markets where Kraken’s product is most mature.”
The exchange is “reviewing all options” regarding its Abu Dhabi Global Market licence, which it announced in April 2022.
Following reports on Friday that Kraken had closed its Abu Dhabi office, the exchange said its clients in the UAE and MENA region will still have access to other products and services as normal, and that only its dirham operations have been suspended.
Clients had been notified one month ago that the change was coming, Kraken said, and it has been assisting them to transfer off the AED platform.
Kraken’s MENA head Benjamin Ampen is assisting with the transition while eight other employees are no longer with the company, the exchange confirmed.
The spokesman added: “Kraken regularly reviews its business lines to ensure we’re employing resources globally to best achieve our mission of accelerating the adoption of cryptocurrency.”
San Francisco-based Kraken was launched in 2011 and has grown to become one of the largest cryptocurrency exchanges, available in more than 190 countries globally and catering to nine million users, according to its website.
However, it has not been immune to the market conditions or the negative sentiment surrounding the so-called Crypto Winter, a prolonged downturn in cryptocurrency prices, and announced global 1,100 job layoffs in December 2022, and later the same month stopped operations in Japan.
Speaking to Zawya in June 2022, Ampen said the UAE could be a “globally recognised crypto and digital asset hub”.
(Reporting by Imogen Lillywhite; editing by Seban Scaria)
