Kraken Eyes Indian Market Re-Entry with Strategic Leadership Appointment
San Francisco’s prominent cryptocurrency exchange, Kraken, is gearing up for an ambitious return to the Indian market. According to a report from the Economic Times on Thursday, this bold move will be spearheaded by Vishesh Khurana, the co-founder of the logistics unicorn Shiprocket, who has been appointed as an advisor to lead Kraken’s local operations. A spokesperson for Kraken has confirmed to Cryptonews that the exchange is actively seeking the necessary licenses to re-establish its presence in India.
Khurana’s Expanding Influence in the Investment Sphere
Khurana’s appointment is a tactical decision that complements his broader mission to mold the investment landscape across India. In 2024, he secured a position at the Silicon Valley-based venture capital firm, Tribue Capital, which manages an impressive $1.6 billion in assets. Here, he will lead the firm’s debut $250 million India-focused alternative investment fund (AIF). Despite his new venture capital role, Khurana remains committed to Shiprocket as an advisor, ensuring that his significant contributions continue to impact the logistics industry. Shiprocket is currently positioned for an IPO, boasting a valuation of $1.2 billion. Furthermore, Khurana is known for his active involvement as an angel investor, having supported over 50 early-stage startups, including well-regarded brands like Jimmy’s Cocktail, Arata, and UrbanPiper.
Crucial Compliance: Kraken’s Path to Market Re-Entry
To effectively re-establish its foothold in India, Kraken must navigate a landscape fraught with legal obligations. The exchange was one of several offshore platforms that faced a banning order last year after the Indian finance ministry issued show-cause notices for failing to comply with the nation’s anti-money laundering (AML) laws. The situation escalated in 2024 when India’s Financial Intelligence Unit (FIU) sought to recover an outstanding $345 million in Goods and Services Tax (GST) from seven foreign exchanges, including Kraken. Regulatory authorities had earlier cautioned these platforms regarding their lack of compliance with local tax regulations.
As Kraken plans its comeback, demonstrating strict adherence to Indian financial regulations is paramount, particularly the Prevention of Money Laundering Act (PMLA). Notably, other offshore exchanges such as Binance and KuCoin have already received clearance from the FIU to resume operations in India, setting a precedent that Kraken will need to follow.
India’s Evolving Crypto Landscape: A Broader Trend
Kraken’s re-entry ambitions align with a larger trend where various global cryptocurrency exchanges are also seeking to make a comeback in India. Recently, TechCrunch reported that Coinbase is engaged in talks with Indian regulators to ensure compliance ahead of its operational revival.
Amid these developments, the Indian government is diligently refining its regulatory framework surrounding digital assets. In a significant announcement during the Budget 2025 session on February 1, Finance Minister Nirmala Sitharaman proposed stricter tax measures for cryptocurrencies. She suggested that “virtual digital assets” should be categorized as undisclosed income, thus exposing them to higher tax rates and more stringent reporting requirements under the Income Tax Act. This proposal builds upon India’s existing 30% tax on crypto income and reinforces prior anti-money laundering regulations established two years ago.
Key Takeaways: Why This Matters
The potential return of Kraken to the Indian market signifies a pivotal moment for India’s cryptocurrency landscape. As global exchanges rejuvenate their interest in the region, the ripple effects could intensify competition, foster innovation, and encourage regulatory clarity. This movement also highlights the growing acknowledgment of cryptocurrencies as an integral part of the financial ecosystem, urging authorities to revisit and reshape policies that could either bolster or hinder industry growth.
Expert Opinions: Insight from Industry Leaders
Industry experts are cautiously optimistic about Kraken’s re-entry. Many see it as a reflection of the global shift toward embracing cryptocurrencies, yet they stress the importance of rigorous regulatory compliance. “Kraken’s approach to secure the necessary licenses shows their commitment to operating within the legal frameworks of India, which is crucial for sustainability in a rapidly evolving market,” says a crypto analyst at a leading consultancy firm.
Looking Ahead: Future Outlook for Kraken and Indian Crypto Market
As Kraken prepares to engage with Indian authorities, the landscape is poised for substantial transformation. With ongoing discussions about regulatory frameworks and compliance, coupled with the government’s evolving stance on digital currencies, Kraken’s strategic moves in India may set the stage for other exchanges and startups to follow suit. The future of cryptocurrency in India hinges on the collective efforts of exchanges, regulators, and investors aiming to create a robust, compliant, and thriving digital asset market.