Payward Asia (Kraken Japan) — Japan Crypto Asset Exchange Operator (dormant / exited) overview
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This entry sits under exchanges index. Read it against Jp Exchange Coinbase Japan for the closest parallel pattern (外資系 retail exit) and FSA crypto-asset exchange registration system — number system / Local Finance Bureau jurisdiction / registration requirements for the broader system / regulatory boundary.
Kraken is a rare foreign exchange operator that entered the Japanese market 2 times and withdrew 2 times. 1 st time 2014–2018, 2 nd time 2020–2023. Currently dormant.
foreign-exchange-exit / 2 -time Japan market withdrawal / FSA registration history → cancelled
1. Legal entity · shareholders
- Trade name (final): Payward Asia Inc. (Japan branch-based) / former Kraken Japan division
- Parent company: Payward, Inc. (USA, San Francisco; brand name Kraken)
- Founded 2011年; Jesse Powell founding CEO
- 2025-04 NASDAQ listing preparation phase reported (publicly announced)
- Business structure in Japan: initially direct service from Payward US headquarters (2014–2018), then re-entry via locally registered entity under Payward Asia (2020–2023)
2. Licence · registration history
- 1 st phase (2014–2018): Service suspended around the time of the revised Payment Services Act enforcement (2017-04 ). Services to Japan residents ceased without obtaining registration
- 2 nd phase (2020–2023): Registered as a crypto asset exchange operator at the Kanto Local Finance Bureau under the Payward Asia name (during 2020 年). Joined JVCEA as a Class 1 member
- 3 rd phase (2023-01 onward): Japan withdrawal announced. FSA registration cancellation procedures carried out. Withdrew from JVCEA
- 2026-04 snapshot: Payward Asia not listed in FSA registration list (cancellation confirmed)
3. Supported assets
- Before service suspension in 1 st phase: Lineup aligned with US headquarters, centred on BTC, ETH, BCH, LTC, XRP, etc.
- At 2 nd-phase re-entry: Reduced listing for Japan; limited to major tokens on the JVCEA whitelist
- After withdrawal: Zero listed assets (dormant)
4. Business scope
- Spot trading only (retail). Limited public information on derivatives, margin, and staking
- Fiat deposit: bank transfer (JPY)
- During 2 nd phase, expansion into OTC and corporate services was limited and ceased entirely alongside the retail withdrawal
5. Market share · trading volume
- No public figures. In both phases, account counts and trading volume did not achieve a notable share of the domestic market; the firm trailed domestic leaders such as bitFlyer, Coincheck, and GMO Coin as a foreign operator
- Customer base: primarily retail residents of Japan (corporate was limited)
- Industry positioning: frequently cited alongside Coinbase Japan as an example of the foreign exchange operator Japan market withdrawal pattern
6. History · major events
| Period | Event |
|---|---|
| 2014 | Kraken (direct US headquarters operation) begins service to Japan residents |
| 2017-04 | Revised Payment Services Act enforced (FSA crypto asset exchange operator registration system established) |
| 2018-04 | Kraken Global Blog announces suspension of services to Japan residents by 2018-06 , citing high costs and regulatory environment |
| 2018-06 | 1 st phase service fully suspended. Japan resident accounts closed |
| 2019–2020 | Japan re-entry preparation period. FSA registration application filed under Payward Asia name |
| During 2020 年 | Payward Asia completes registration as crypto asset exchange operator at Kanto Local Finance Bureau. Joins JVCEA as Class 1 member |
| 2020–2022 | 2 nd phase service operations. Retail spot provided for major tokens including BTC/ETH |
| 2023-01 | Kraken headquarters formally announces withdrawal from Japan operations (background: crypto market downturn, global workforce reduction 30%, regulatory burden) |
| 2023-04 | 2 rd phase service suspended, customer asset repatriation completed. FSA registration cancellation procedures carried out |
| 2026-04 | FSA registration list snapshot confirms absence of Payward Asia (dormant status continues) |
7. Strategic developments
The 2 nd-phase withdrawal (announced 2023-01 ) was driven by the following strategic factors at parent company Payward:
- 2022 年 crypto market downturn and global cost reduction (workforce reduction 30%)
- Restrictions on foreign operators’ listed tokens in the Japan market (JVCEA whitelist compliance required) and KYC/AML compliance costs
- Intensified SEC oversight in the US home market and strategic decision to concentrate on domestic market
After withdrawal, Payward headquarters is advancing NASDAQ listing preparations for 2025–2026 年, and as of 2026-05 there is no public announcement of a further Japan re-entry. Foreign spot CEX operators accessible in the Japan market are limited to Binance Japan and BitTrade.
Industry positioning: A representative example of the “foreign retail CEX withdrawal pattern” alongside Coinbase Japan (2023-02 withdrawal). The simultaneous withdrawal of both firms demonstrates that the JVCEA whitelist, FSA regulatory burden, and real-name account requirement (see JVCEA: Overview of the Self-Regulatory Framework) have become structural barriers to foreign operator entry. For comparative analysis see Domestic Crypto Asset Exchange M&A and Consolidation History (2018-2026).
8. Related individuals
- Jesse Powell: Payward / Kraken founder, former CEO (resigned 2023-09 ). Made multiple communications about the Japan market during the 2018 年 1 st-phase withdrawal
- Dave Ripley: Current Payward CEO (assumed office 2023-09 ). Top management at the time of the 2023 年 2 nd-phase withdrawal decision
- Japan entity representative director: No public information (official website gone as of 2026-05 )
Related
- jp-exchange-coinbase-japan — Contemporaneous foreign operator withdrawal case (closest comparator)
- jp-exchange-binance-japan — Foreign operator remaining in the Japan market
- jp-exchange-bittrade — Also a foreign operator (former Huobi Japan)
- jp-vasp-ma-consolidation-history — JP VASP M&A and withdrawal history
- fsa-vasp-registration-system — FSA registration system
- jvcea-self-regulatory-overview — JVCEA self-regulatory framework
- global-cex-top10-comparison — Global CEX top 10 (Kraken headquarters)
- INDEX — Exchange domain index
- japan-financial-regulation — Japan financial regulation overview
Sources
- Compiled from public information (Payward Inc. / Kraken Blog 2018-04 Suspension of Services to Japanese Residents)
- Compiled from public information (FSA Kanto Local Finance Bureau crypto asset exchange operator registration list — Payward Asia cancellation confirmed, 令和8年4月1日 snapshot)
- Compiled from public information (CoinPost / Kaso-tsuka Watch 2018年 Kraken Japan withdrawal coverage)
- Compiled from public information (CoinPost 2020 Kraken re-entry coverage, 2023-01 withdrawal announcement coverage)
- Compiled from public information (JVCEA member directory — Payward Asia absence confirmed, 2026-05)