Crypto Exchange Kraken Looks to Resume Services in India
San Francisco-based cryptocurrency exchange Kraken is reportedly preparing to re-enter the Indian market.
To lead its local operations, the company has appointed Vishesh Khurana, co-founder of Shiprocket, as an advisor, the Economic Times reported Thursday. According to the outlet, Kraken plans to engage with Indian authorities soon to apply for the necessary licenses.
A Kraken representative confirmed to Cryptonews that the exchange intends to seek authorization to operate in India.
Khurana Expands Investment Footprint with VC Role
Khurana’s appointment aligns with his ongoing efforts to shape India’s investment landscape. In 2024, he joined Silicon Valley-based venture capital firm Tribue Capital, managing $1.6b, to lead its first $250m India-focused alternative investment fund (AIF).
Despite his shift to venture capital, he remains involved with Shiprocket as an advisor, ensuring continuity at the logistics unicorn he helped build. Shiprocket, now valued at $1.2b, is gearing up for an IPO. Khurana is also an active angel investor, having backed over 50 early-stage startups, including notable names like Jimmy’s Cocktail, Arata and UrbanPiper.
Kraken’s India Return Hinges on Strict Compliance with Financial Laws
Kraken was among several offshore crypto exchanges banned in India early last year after the finance ministry issued show-cause notices for non-compliance with the country’s anti-money laundering laws.
Later in 2024, India’s Financial Intelligence Unit (FIU) took action to recover $345m in unpaid Goods and Services Tax (GST) from seven foreign exchanges, including Kraken. Authorities had previously warned these platforms about their failure to comply with local tax laws.
To re-enter the market, Kraken will need to demonstrate full compliance with Indian financial regulations, particularly the Prevention of Money Laundering Act (PMLA). Several offshore exchanges, including Binance and KuCoin, have already secured clearance from the FIU to resume operations in India.
India’s Crypto Landscape Shifts as Exchanges Seek Reentry
Kraken’s plans to return to India coincide with broader moves by other global crypto exchanges exploring reentry into the market. Earlier this month, TechCrunch reported that Coinbase is also in discussions with Indian regulators to ensure compliance before resuming operations.
At the same time, the Indian government is refining its regulatory framework for digital assets. In the Budget 2025 announcement on Feb. 1, Finance Minister Nirmala Sitharaman proposed stricter tax policies for cryptocurrencies.
She recommended classifying “virtual digital assets” as undisclosed income, which would subject them to higher tax rates and stricter reporting obligations under the Income Tax Act. This builds on India’s existing 30% tax on crypto income and prior anti-money laundering measures introduced two years ago.
Meanwhile, Economic Affairs Secretary Ajay Seth has acknowledged that India is reassessing its stance on cryptocurrencies in response to shifting global trends. He pointed to the US’ evolving regulatory approach under President Trump as a key influence in shaping India’s policy considerations.
Source: cryptonews.com
