Kraken is closing its US operations and laying off most of its employees due to a drop in cryptocurrency demand.
Cryptocurrency market instability in 2022 caused widespread layoffs. Gemini, Kraken, and Coinbase Global Inc. announced considerable cost-cutting.
Kraken is winding down operations in this country and will lay off the majority of its workforce.
Leading cryptocurrency exchange Kraken has shut down its Abu Dhabi office less than a year after receiving a local licence. This action is a component of a bigger downsizing plan that will result in the corporation firing nearly a third of its employees globally. About eight jobs were affected by Kraken's decision to fire the vast majority of its team members, who were largely located in the Middle East and North Africa.
Customers in the region will still be able to utilise the platform even though the cryptocurrency exchange no longer supports transactions made in United Arab Emirates dirhams. According to a spokesperson of the exchange, any deposits made by customers in dirhams would automatically be converted to dollars before becoming available for withdrawal. Customers can also keep using any other fiat currency that Kraken currently accepts.
In 2022, the cryptocurrency markets saw extreme volatility, which led to a wave of layoffs throughout the sector. Numerous businesses, including Gemini, Kraken, Coinbase Global Inc., announced significant cost-cutting initiatives. Even though the values of digital tokens have improved somewhat thus far in 2023, exchange profitability is being negatively impacted by the low trading volumes.
Kraken, a rival to Binance, has reduced its plans for worldwide expansion and, as of last month, stopped all of its operations in Japan. The company said at the end of November that it intends to decrease its global personnel by 30%, or roughly 1,100 people, in response to "current market conditions."
Kraken intends to maintain a small staff base in the MENA region. The company's managing director for the area, Benjamin Ampen, will stay on to help with the transition but is expected to leave once it is complete, the spokesman said. Kraken was awarded a cryptocurrency licence by the Abu Dhabi Global Market in April of last year, but the name of the company is no longer listed as having an active operation there.
