The ATP responded by suspending Kyrgios for eight weeks and fining him $US41,500 ($AU53,000).
Krajicek, the 1996 Wimbledon champion, has some sympathy, telling the Nederlandse Omroep Stichting: "We wanted to hold him to his contract.
"You see what can happen when he is tired and (tennis) has little meaning, as in China. We do not want that.
"So we decided to terminate his contract. We want a top tennis player seen on the court. Kyrgios prefers his passion beyond his profession.
"If every week he is focused on tennis, he might be mentally burned out after six months. He needs an outlet."
Kyrgios' ban will be reduced to three weeks if he enters a plan of care under the direction of a sports psychologist.
The Australian was unrepentant in his press conference immediately after the match but, following the announcement of the ban, released a statement apologising for his behaviour.
Tennis Australia announced Kyrgios had agreed to the plan but doubt was raised when the player responded to a question on Twitter about whether he would follow that course of action with the answer: "Probs not."
The tweet was later deleted and Press Association Sport understands Kyrgios' commitment to the programme currently still stands.