This Week In Crypto Asia: Kraken Eyes India Return
Popular crypto exchange Kraken could be preparing for a potential re-entry into the Indian market after being banned last year.
According to Kraken is in discussions with India’ Financial Intelligence Unit (FIU) to obtain the 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, after the recent re-entry of both the companies, San Francisco based Kraken appears to be following a similar path.
BREAKING:
KRAKEN IS PLANNING TO RESTART OPERATIONS IN INDIA AFTER THE FIU BAN EARLIER IN 2024.
Looks like a major a comeback to me!
— Money Guru Digital (@Moneygurudigi)
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 plan to use Khurana’s expertise in business scaling and regulatory navigation in India.
Explore:
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. Bybit experienced a temporary halt of trading activities in India. However, the company has since reported completing all its licensing work in India. It also paid its penalty amount in full.
On 12 February 2025, Coinbase said that 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,” a company spokesperson said.
Binance also had to temporarily exit India till compliance issues were sorted.
In December 2023, authorities in India found the company to be unregistered with the FIU, eventually 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 said that the user confidence has grown in the company.
India’s FIU had also imposed a fine of INR 9 Crores, 27 lakhs (approx. $1 million) on Bybit for violating the Prevention of Money Laundering Act.
“Bybit kept expanding its services in the Indian market without securing mandatory registration with the FIU,” the government notice said.
Explore:
Kraken’s Transparency Report: 40% Spike In Data Requests From Law Enforcement Agencies
Kraken also revealed that it witnessed a substantial increase in law enforcement and regulatory data requests in its latest transparency report.
The company apparently received 6826 data requests from law enforcement and regulatory agencies in 2024. This is a 3.86% increase in data requests compared to the previous year,
Notably, US agencies including SEC and FBI accounted for 1951 out of 6826 requests – 28.6% of the total.
Key Takeaways
Operating in India comes with significant regulatory hurdles. By appointing experienced local advisors and aligning its 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.
BREAKING: 
