• Kraken is closing its UAE offices and suspending all support for customers in that region of the world.
• This is due to the crypto crash of 2022 and the resulting losses that many digital currency businesses have suffered.
• The collapse of FTX, one of the world’s largest digital currency trading companies, has also had a major impact on the industry.
Kraken Closing Its UAE Offices
Kraken, a major digital currency exchange, has been forced to forfeit its position in Japan and close its Abu Dhabi (UAE) office after suffering losses due to the crypto crash of 2022. A spokesperson for Kraken released a statement saying that they are suspending all support for customers – both retail and institutional – in that region of the world.
Crypto Crash Impact
The crypto crash of 2022 was devastating and affected virtually every single major crypto enterprise out there. Companies such as Gemini and Coinbase were forced to undergo their second series of layoffs, with each letting go of at least 1,000 employees respectively. In addition, many businesses in the UAE invested heavily in FTX which collapsed shortly afterwards.
FTX was once a golden child in the industry having arrived on the scene in 2019 and becoming one of the 5 largest digital currency trading companies across the globe by 2022. Its founder – Sam Bankman-Fried – was celebrated as a genius but his net worth plummeted after FTX’s collapse, leading him to await trial at his parents‘ California home over allegations he misused customer funds.
UAE’s Attraction Of Crypto Businesses
The United Arab Emirates has been attempting to attract new digital currency companies from around the world in an effort to become a hub for cryptocurrencies. Unfortunately this hasn’t worked out as planned with most corporate casualties caused by either mismanagement or market forces beyond their control such as what happened with FTX or general market downturns like what happened during 2022’s crypto crash.
Despite Kraken’s closure in Abu Dhabi (UAE), customers will still be able to access other services provided by them although trading will most likely be off limits given their departure from this part of the world. It seems like no matter where you look these days, there is always something going wrong within this volatile industry yet somehow it continues on despite all odds stacked against it – so much so that even governments are now interested enough to get involved!