San Francisco-based cryptocurrency exchange Kraken is preparing for a strategic re-entry into the Indian market after being banned earlier in 2024 due to non-compliance with India’s stringent anti-money laundering (AML) regulations. The move comes as part of Kraken’s broader global expansion strategy and a renewed commitment to regulatory compliance.
To spearhead its return, Kraken has appointed Vishesh Khurana, co-founder of Shiprocket and managing partner at Tribe Capital India, as an advisor. Khurana will oversee Kraken’s local operations, ensuring adherence to Indian financial regulations. His appointment reflects Kraken’s commitment to constructive engagement with Indian regulators and obtaining the necessary licenses to operate within the country’s legal framework.
Kraken’s renewed interest in the Indian market comes at a time when the exchange is experiencing significant global growth. In 2024, the platform reported revenues exceeding $1.5 billion, more than doubling from $671 million in the previous year. This growth was supported by a total trading volume of $665 billion and assets under management totaling $42.8 billion across 2.5 million funded accounts. Kraken’s robust financial performance underscores its capability to invest in key global markets, including India.
The Indian cryptocurrency landscape is witnessing renewed interest from major global players. Coinbase, the Nasdaq-listed crypto exchange, is also reportedly planning to relaunch its services in India. Binance has resumed operations after addressing compliance issues, signaling a growing trend among international platforms recognizing India’s vast market potential despite regulatory hurdles.
Kraken’s re-entry will require strict adherence to the Prevention of Money Laundering Act (PMLA). Compliance measures will include registration with the Financial Intelligence Unit (FIU), robust know-your-customer (KYC) protocols, and diligent reporting of suspicious transactions. By aligning its operations with these requirements, Kraken aims to capture India’s burgeoning cryptocurrency market while fostering trust among Indian investors.
This strategic comeback positions Kraken to tap into India’s growing crypto economy, leveraging its global expertise while meeting local compliance standards, potentially reshaping the competitive landscape of cryptocurrency exchanges in India.
