Kraken exchange is getting ready to rejoin the Indian market after being banned in 2024 for violating anti-money laundering laws.
The exchange has been working with local authorities to secure the permits required to resume operations. According to a news reporting by The Economic Times, Kraken has appointed Vishesh Khurana, co-founder of Shiprocket and managing partner at Tribe Capital India, as an advisor to lead its India expansion efforts. Arjun Sethi, founder of Tribe Capital and Kraken’s co-CEO, is expected to play a key role in shaping the exchange’s strategy in the country.
Nine offshore exchanges, including Kraken, were blacklisted by India’s Financial Intelligence Unit last year for breaking the Prevention of Money Laundering Act. To operate legally, exchanges must register with the FIU, implement Know-Your-Customer compliance, and report suspicious transactions.
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Before restarting operations, offshore exchanges could also need to settle outstanding Goods and Services Tax obligations. Besides Kraken, Coinbase is also considering relaunching into the Indian market. The FIU has previously granted clearance to Binance and KuCoin, paving the way for Kraken’s possible approval.
Kraken is currently the seventh-largest cryptocurrency exchange globally based on 24-hour trading volume, according to CoinMarketCap exchange ranking. The exchange’s $1.5 billion revenue in 2024 more than doubled its $671 million 2023 revenue.
Kraken, meanwhile, is being criticized for its affiliation with Dave Portnoy, the founder of Barstool Sports. Portnoy has been connected to several memecoin pump-and-dump plots. He has been accused of market manipulation for issuing and swiftly selling tokens that subsequently plummeted in value.
The cryptocurrency community has questioned why Kraken continues to support him despite allegations of unethical behavior. One user on X wrote, “How long is Kraken going to keep sponsoring Dave Portnoy while he openly mocks the space on a daily basis?”
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