• Kraken is closing its UAE offices and suspending all support for customers in the region.
• This closure is due to the crypto crash of 2022, which has affected many major digital currency exchanges like Gemini and Coinbase.
• The crash was also contributed to by the rise and fall of FTX, which was once a prominent digital currency trading company.
Kraken Closes UAE Offices
Kraken, a major digital currency exchange, is closing its offices in Abu Dhabi located in the United Arab Emirates (UAE). A spokesperson for Kraken released a statement saying that they are regularly reviewing their business lines to ensure their resources are being used properly. Trading will be off limits for customers in that region but they will still have access to other services offered by Kraken.
2020 Crypto Crash Affects Major Exchanges
The 2020 crypto crash has had an immense effect on the entire industry, with many companies having to close or layoff employees. Major exchanges such as Gemini and Coinbase were forced to undergo multiple rounds of layoffs, with each letting go of at least 1000 people. This economic downturn can also be linked back to FTX – a prominent digital currency trading platform – whose founder Sam Bankman-Fried is now facing trial at his parents’ California home after it was alleged he used customer funds for personal gain.
UAE’s Attempts To Attract Digital Currency Companies
Prior to this crash, the UAE had been actively pursuing new digital currency businesses from across the world and had largely been successful in doing so. Unfortunately, none of these efforts prevented them from experiencing similar effects felt by other large crypto enterprises as well as small businesses during this time period.
Effects On The Cryptocurrency Industry
The cryptocurrency industry has been hit hard by this market downturn with some companies unable to bounce back due to losses incurred during this time period. As we continue into 2023, it remains unclear just how much longer these effects will be felt throughout the industry as well as what new regulatory measures may come into play in order to prevent similar events from occurring again in the future.
Conclusion
In conclusion, while Kraken is closing its UAE offices and suspending all customer support there due to 2020’s crypto crash, customers still retain access to other services offered by Kraken. This move comes shortly after both Gemini and Coinbase experienced multiple rounds of layoffs due largely in part from FTX’s founder Sam Bankman-Fried who allegedly misused customer funds for personal gain resulting in numerous losses for cryptocurrency companies worldwide