Crypto Platform Kraken Planning Re-Entry Into Indian Market: Report

SUMMARY

To restart its operations in India, Kraken will have to first apply for the licence and engage with the authorities

The Indian Finance Ministry's Financial Intelligence Unit (FIU) in December 2023 issued show cause notice to nine offshore cryptocurrency exchanges, including Kraken and Binance

Google also removed these crypto exchange apps from its Play Store in India in January 2024

US-based cryptocurrency platform Kraken is reportedly looking to relaunch its operations in India and has roped in Shiprocket cofounder Vishesh Khurana as an advisor to lead the country’s operations.

However, to restart its operations in India, Kraken will have to first apply for the licence and engage with the authorities, ET reported, citing sources close to the matter.

“We are looking to enter India officially, and will build a team there,” one of the sources told ET.

The Indian Finance Ministry’s Financial Intelligence Unit (FIU) in December 2023 issued show cause notice to nine offshore cryptocurrency exchanges, including Kraken and Binance. Later Google also removed these crypto exchange apps from its Play Store in India.

It is pertinent to note that these platforms were banned for non-compliance with the Prevention of Money Laundering Act (PMLA).

The offshore crypto platforms also filed petitions last year in order to restart operations in India.

It was also reported earlier that the crypto exchanges may be allowed to operate only after they agree to comply with PMLA provisions, including mandates related to registrations, KYC (know your customer) norms and reporting of suspicious transactions as well as payment of penalties.

FIU oversees trade in virtual digital assets (VDA) and ensures compliance with the Prevention of Money Laundering Act (PMLA) and the VDA taxation framework.

The development comes at a time when the enforcement directorate is also keeping a watch on money laundering frauds related to Bitcoin. The ED has attached assets worth more than INR 10 Cr, as part of a money laundering probe in connection with the ‘illegal’ Bitcoin investments fraud case.

A provisional attachment order was issued on February 17 (Monday) under the PMLA for properties worth INR 10.63 Cr, including commercial properties situated in prime business centres of Dubai, UAE. The assets were owned by late Amit Bhardwaj, the key accused of one of the world’s biggest crypto Ponzi schemes.

Last year, ED also attached immovable and movable properties worth INR 97.79 Cr belonging to bollywood actor Shilpa Shetty’s husband, Raj Kundra, in connection with the Bitcoin Ponzi scam.