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Cryptocurrency exchange Kraken has reportedly closed its Abu Dhabi office less than 12 months after receiving regulatory approval to operate in the region.
According to a February 2 report from Bloomberg, Kraken is closing its Abu Dhabi office, laying off about eight people on its Middle East and North Africa-focused team, or MENA. The exchange has been licensed to offer services in the international financial center Abu Dhabi and the Abu Dhabi Global Markets since April 2022 — before the market downturn that affected many crypto companies.
As part of the shutdown, Kraken is reportedly suspending support for transactions denominated in local dirhams. However, users present in the region will still have access to the platform using other fiat currencies. Some employees will also reportedly remain in the area, with Kraken MENA managing director Benjamin Ampen likely leaving following the transition.
The reported move in the Middle East follows Kraken announcing in November that it plans to cut its workforce by 30% – more than 1,000 people – in a bid to survive the crypto winter. Kraken co-founder Jesse Powell describes the layoffs as bringing the exchange back to size in 2021, when it is thriving. Powell announced in September that he plans to step down as CEO but remain as chairman of the board.
Related: Kraken crypto exchange is next door closed to Russian users
Kraken also withdrew from Japan on Jan. 31, marking the second time the exchange has withdrawn from a major Asian economy since April 2018. The company said in December that the move was part of an allocation of resources, citing “current market conditions in Japan”. and “weak crypto markets globally.”
Cointelegraph reached out to Kraken, but received no response at the time of publication.
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