After getting the boot from India last year, crypto exchange Kraken is plotting its return to one of the world’s hottest digital asset markets. The San Francisco-based company isn’t coming empty-handed – they’ve tapped Shiprocket co-founder Vishesh Khurana to help navigate the tricky waters of Indian regulations.
Khurana’s bringing some serious firepower to the table. Fresh off joining Tribue Capital to run their new $250 million India fund, he’s kept his finger in multiple pies – advising his logistics unicorn Shiprocket as it gears up for an IPO, while quietly building a portfolio of over 50 startup investments on the side.
But Kraken’s got some explaining to do first. They were among several overseas exchanges shown the door by Indian authorities for playing fast and loose with anti-money laundering rules. Adding insult to injury, the Financial Intelligence Unit came knocking for $345 million in unpaid taxes from foreign exchanges, Kraken included.
The path back isn’t simple. Kraken will need to jump through all the regulatory hoops – especially the Prevention of Money Laundering Act – to get back in the game. Some of their competitors like Binance and KuCoin have already managed to sweet-talk their way back in with the FIU’s blessing.
They’re not alone in eyeing a comeback. Word is Coinbase is also working the phones with Indian regulators, trying to find their way back into the market.
Meanwhile, India’s not making life any easier for crypto players. Finance Minister Sitharaman just dropped plans to treat crypto as undisclosed income – translation: higher taxes and more paperwork. This comes on top of the already steep 30% crypto tax they slapped on two years ago.
But there might be a silver lining. Economic Affairs Secretary Seth hints that India’s taking notes from the changing crypto tune in the U.S. under Trump, suggesting the door might be cracking open for a more welcoming approach to digital assets.
But let’s keep it real – while Brazil’s move is historic, a similar launch in the U.S. would make much bigger waves in the crypto pond, given the sheer size of American financial markets.
