Kraken is gearing up to re-enter the Indian market after being banned in 2024 for breaching anti-money laundering regulations. The exchange is working closely with local authorities to obtain the necessary approvals and has appointed Vishesh Khurana, a prominent industry figure, to lead its expansion efforts. Kraken's co-CEO, Arjun Sethi, is also expected to play a key role in shaping its strategy in India.

India's Financial Intelligence Unit blacklisted Kraken and eight other offshore exchanges last year for failing to comply with anti-money laundering laws. To operate legally, exchanges must register with the FIU, adhere to Know-Your-Customer requirements, and report suspicious transactions. Some firms may also need to settle outstanding tax obligations before resuming operations. Binance and KuCoin have already secured approval, raising expectations that Kraken may soon follow suit.

Despite its global success, Kraken is under scrutiny over its ties to Dave Portnoy, the controversial founder of Barstool Sports. Portnoy has been linked to memecoin schemes and accused of market manipulation, with critics arguing his actions undermine trust in the sector. Many in the crypto community have questioned Kraken's continued support for him, with some openly criticising the exchange for backing someone they believe is harming the industry's reputation.