Key Points:
- Crypto exchange Kraken is closing its office in Abu Dhabi and suspending support for the national currency of the United Arab Emirates.
- Eight employees of the exchange’s MENA staff were let go while managing director Benjamin Ampen was retained to manage the changeover in the area.
As part of a restructuring that entails laying off nearly a third of its worldwide personnel, crypto exchange Kraken has closed its Abu Dhabi headquarters less than a year after receiving a local license.
A spokeswoman for Kraken told Bloomberg that the bulk of its Middle East and North Africa-focused staff had been laid off, which affected around eight posts. Kraken got a cryptocurrency license from Abu Dhabi Global Market in April, but a register for the market no longer lists a functioning organization by that name.
According to reports, the exchange stopped supporting transactions in the local dirham currency as a result of the suspension. Existing users in the area can still use other fiat currencies to access the platform.
Kraken intends to maintain a number of staff in the MENA region. The source indicated that after helping with the transfer, Kraken’s managing director for the area, Benjamin Ampen, will likely part ways with the company.
After stating in November that it would be laying off more than 1,000 employees to survive the crypto winter, the exchange reportedly made a move in the Middle East. The layoffs, according to Kraken co-founder Jesse Powell, will return the exchange to its pre-2021 size when it quickly developed. Powell stated in September that he would continue to serve on the board while resigning as CEO.
Last year’s volatility in the cryptocurrency markets led to a wave of layoffs throughout the sector, with companies including Kraken, Coinbase Global, Crypto.com, and Gemini announcing significant cost-cutting initiatives. Although prices of digital tokens have so far in 2023 gained some ground, volumes are still low, which hurts exchange income. As of January 31, Kraken also left Japan, marking the exchange’s second exit from the significant Asian economy since April 2018.
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