Popular crypto exchange Kraken could be preparing for a potential re-entry into the Indian market after being banned last year.
According to local media reports dated 20 February 2025, Kraken is in discussions with India’s Financial Intelligence Unit (FIU) to obtain necessary licenses.
In 2024, local authorities blacklisted and banned Kraken for non-compliance with anti-money laundering (AML) and counter financing of terrorism (CFT) laws. At the time, India banned eight crypto exchanges, including big names like Binance and Coinbase. However, following the recent re-entries of both companies, San Francisco-based Kraken appears to be exploring a similar path.
🇮🇳BREAKING: KRAKEN IS PLANNING TO RESTART OPERATIONS IN INDIA AFTER THE FIU BAN EARLIER IN 2024. Looks like a major comeback to me! 🚀 pic.twitter.com/3c0Xa0Iixs — Money Guru Digital (@Moneygurudigi) February 20, 2025
India represents one of the fastest-growing markets for cryptocurrencies due to its large population and increasing adoption of digital assets. The report mentions that Vishesh Khurana, co-founder of Shiprocket, advises Kraken as it prepares to re-enter India. Shiprocket is a logistics startup valued at $1.2 billion and is preparing for an IPO. Kraken plans to leverage Khurana’s expertise in business scaling and regulatory navigation in India.
Explore: India Cracks Down On Bybit: $1 Million Fine Imposed, Website Unblocked After Penalty Payment
Binance, Coinbase, Bybit Re-enter India
Recently, India’s FIU has imposed a fine of INR 9 Crores, 27 lakhs (approx. $1 million) on Bybit for violating the Prevention of Money Laundering Act. The government announcement of the fine was released on 31 January 2025. Bybit experienced a temporary halt of trading activities in India. However, the company has since reported completing all licensing work in India. It also paid its penalty amount in full.
On 12 February 2025, Coinbase announced it is engaging with various Indian authorities, including the FIU: “Coinbase is excited by the opportunities in the Indian market and intends to comply with applicable regulatory requirements,” said a company spokesperson. Binance also had to temporarily exit India until compliance issues were addressed.
In December 2023, Indian authorities found Binance unregistered with the FIU, leading to the blocking of Binance URL and apps on Android and Apple store. Since Binance’s re-entry in India after registering with the FIU, the company reported increased user confidence.
Kraken’s Transparency Report: 40% Spike In Data Requests From Law Enforcement
Kraken recently revealed it saw a substantial increase in law enforcement and regulatory data requests in its latest transparency report. The company reportedly received 6,826 data requests from law enforcement and regulatory agencies in 2024, a 3.86% increase compared to the previous year. Notably, US agencies, including the SEC and FBI, accounted for 1,951 out of 6,826 requests – 28.6% of the total.
Key Takeaways
- Operating in India comes with significant regulatory hurdles. By appointing experienced local advisors and aligning operations with Indian laws, Kraken aims to tap into this promising yet challenging market.
- Kraken has appointed Vishesh Khurana as an advisor. Khurana is a co-founder of Shiprocket and Managing Partner at Tribe Capital India. His expertise in scaling businesses within India is expected to play a pivotal role in Kraken’s efforts.
