Kraken Cryptocurrency Exchange Looks to Re-Enter the Indian Market

San Francisco-based cryptocurrency exchange Kraken is reportedly preparing to re-establish its services in India.

Key Takeaways

Kraken aims to resume operations in India after previous compliance issues.
Vishesh Khurana has been appointed as an advisor to lead local operations.
The exchange needs to demonstrate compliance with Indian financial regulations, especially the Prevention of Money Laundering Act (PMLA).
Other crypto exchanges, including Coinbase, are also looking to re-enter the Indian market.
India is refining its regulatory approach to cryptocurrencies amid shifting global trends.

Kraken

The company has appointed Vishesh Khurana, a co-founder of Shiprocket, as an advisor to lead its local operations, according to a report from the Economic Times. Kraken plans to engage with Indian regulatory authorities soon in order to apply for the necessary licenses to operate in the country.

A representative from Kraken confirmed to Cryptonews that the exchange is moving forward with plans to seek authorization for its operations in India.

Khurana Expands Investment Profile with Venture Capital Role

Khurana's new role reflects his commitment to shaping India's investment landscape. In 2024, he joined Tribue Capital, a venture capital firm in Silicon Valley managing $1.6 billion in assets, to lead its inaugural $250 million India-focused alternative investment fund (AIF).

Despite his transition to venture capital, he continues to serve as an advisor to Shiprocket, ensuring stability for the logistics unicorn he helped establish. Now valued at $1.2 billion, Shiprocket is preparing for an IPO. Khurana is also a proactive angel investor, having supported over 50 early-stage startups, including well-known brands like Jimmy’s Cocktail, Arata, and UrbanPiper.

Kraken’s Return Depends on Stringent Compliance with Financial Regulations

Kraken was one of several offshore crypto exchanges banned in India early last year due to failure to comply with the country's anti-money laundering laws. Following this, the Financial Intelligence Unit (FIU) of India took steps to recover $345 million in unpaid Goods and Services Tax (GST) from multiple foreign exchanges, including Kraken. Authorities previously issued warnings to these platforms for not complying with local tax requirements.

For Kraken to successfully re-enter the Indian market, it will need to demonstrate full compliance with Indian financial regulations, particularly the Prevention of Money Laundering Act (PMLA). Other offshore exchanges such as Binance and KuCoin have already obtained clearance from the FIU to resume their operations in India.

India’s Crypto Landscape Evolves as Exchanges Seek Re-entry

Kraken's intentions to return to India align with wider efforts by other international crypto exchanges to re-establish their presence in the market. Earlier this month, TechCrunch reported that Coinbase is also in talks with Indian regulators to ensure they meet compliance standards before resuming operations.

Concurrently, the Indian government is revising its regulatory framework concerning digital assets. In the Budget 2025 announcement on February 1, Finance Minister Nirmala Sitharaman proposed stricter tax policies for cryptocurrencies.

She suggested classifying "virtual digital assets" as undisclosed income, which would expose them to higher tax rates and more stringent reporting obligations under the Income Tax Act. This proposal builds on India’s existing 30% tax on crypto income and the anti-money laundering measures implemented two years prior.

Furthermore, Economic Affairs Secretary Ajay Seth has recognized that India is reevaluating its position on cryptocurrencies in response to global trends. He highlighted the evolving regulatory landscape in the US under President Trump as a significant influence on India’s policy direction.