Kraken Exchange Set to Reenter Indian Market

Kraken exchange is preparing to rejoin the Indian market after a ban in 2024 due to violations of anti-money laundering laws.

The exchange has been collaborating with local authorities to secure the necessary permits for resuming operations. According to a report from The Economic Times, Kraken appointed Vishesh Khurana, co-founder of Shiprocket and managing partner at Tribe Capital India, as an advisor to spearhead its India expansion efforts. Arjun Sethi, founder of Tribe Capital and Kraken’s co-CEO, is expected to play a significant role in shaping the exchange’s strategy in the country.

Last year, India’s Financial Intelligence Unit blacklisted nine offshore exchanges, including Kraken, for violating the Prevention of Money Laundering Act. To operate legally in India, exchanges need to register with the FIU, comply with Know-Your-Customer regulations, and report suspicious transactions.

Additionally, offshore exchanges might need to settle any outstanding Goods and Services Tax obligations before resuming operations. Besides Kraken, Coinbase is also considering relaunching in the Indian market. The FIU has previously granted clearance to Binance and KuCoin, which could pave the way for Kraken’s possible reapproval.

As of now, Kraken is the seventh-largest cryptocurrency exchange globally, based on 24-hour trading volume, as reported by CoinMarketCap. The exchange’s revenue reached $1.5 billion in 2024, more than doubling its revenue of $671 million in 2023.

However, Kraken has faced criticism for its association with Dave Portnoy, the founder of Barstool Sports, who has been linked to several memecoin pump-and-dump schemes and accused of market manipulation by issuing and quickly selling tokens that then lost value. The cryptocurrency community has raised concerns about Kraken’s continuing support for him despite these allegations. One user on X questioned, “How long is Kraken going to keep sponsoring Dave Portnoy while he openly mocks the space on a daily basis?”

Read more: Coinbase CPO urges US Congress to act on crypto regulation.