• Kraken is closing its UAE offices, suspending all support for customers in the region.
• The crypto crash of 2022 has had a major impact on many digital currency companies, including Gemini and Coinbase.
• Many businesses in the UAE invested in FTX which has since collapsed and its founder is awaiting trial.
Kraken Closes UAE Offices
Kraken, a major digital currency exchange, has recently announced that it will be closing its offices located in Abu Dhabi (located in the United Arab Emirates or UAE). All support for both retail and institutional customers in the area will also be suspended.
The Impact of Crypto Crash
The crypto crash of 2022 had a devastating effect on many cryptocurrency companies around the world. Two of the biggest examples include Gemini and Coinbase who have both been forced to undergo multiple rounds of layoffs.
Investment In FTX
Many businesses that now call the UAE home invested heavily in FTX – once one of the largest digital currency trading companies globally. However, after an alleged misuse of customer funds by its founder Sam Bankman-Fried, FTX has since collapsed and Bankman-Fried is currently awaiting trial at his parents‘ California home.
UAE Attraction Of Crypto Businesses
Prior to this incident, the UAE had been on a mission to attract new cryptocurrency businesses from all over the world – with some success as Kraken was one of the first major institutions to arrive there last year. Unfortunately, no one could have predicted how severe this crash would be or how much damage it would cause across virtually every single sector within cryptocurrency.
Continued Review Of Resources Globally
A spokesperson for Kraken released a statement saying that they are regularly reviewing their business lines to ensure resources are being employed globally to best achieve their mission: accelerating adoption of cryptocurrency worldwide.