Kraken’s Big Bet on India’s Booming Crypto Market
San Francisco-based cryptocurrency exchange Kraken is making a comeback in India in 2025. The company’s re-entry signals a renewed interest in the world’s most populous nation, which has seen a complex regulatory environment for digital assets. Kraken is reportedly working on obtaining necessary licenses and engaging with Indian authorities to ensure a compliant operation.
India’s crypto market has grown significantly despite past regulatory challenges. A 2023 Chainalysis report ranked India first in grassroots crypto adoption, highlighting the country’s strong demand for digital assets. With an estimated 115 million crypto investors and a total transaction volume of $250 billion in 2024, India presents a lucrative opportunity for global exchanges like Kraken.
Why Did Kraken Exit India Initially?
Kraken previously explored the Indian market but faced obstacles due to uncertain regulations and high taxation. The introduction of a 30% tax on crypto gains and a 1% TDS (tax deducted at source) on crypto transactions in 2022 led to a decline in trading volumes on domestic exchanges. Several global exchanges, including Kraken, opted to stay away from direct operations in India.
However, with global regulatory shifts and increased discussions on crypto policies in India, Kraken sees 2025 as the right time to re-enter the market.
What’s Driving Kraken’s Re-Entry?
1. Regulatory Shift and Global Influence
India’s stance on crypto is evolving. The government has been actively discussing a comprehensive regulatory framework in line with global standards. In February 2025, Economic Affairs Secretary Ajay Seth hinted at a possible revision of India’s crypto policies, especially after the U.S. established a crypto working group under President Trump’s administration.
2. Growing Demand for Secure and Compliant Exchanges
Indian investors are increasingly seeking secure and compliant platforms after the downfall of certain domestic exchanges due to financial mismanagement. Kraken’s reputation as a regulated and security-focused exchange could give it an edge over competitors.
3. India’s Expanding Digital Payment Ecosystem
With UPI transactions crossing $2.5 trillion in 2024, digital financial services in India are booming. Kraken may leverage this infrastructure to enable seamless crypto transactions for Indian users.
Challenges Kraken Might Face in India
Despite the opportunity, Kraken will have to navigate several challenges, including:
- Regulatory Uncertainty: India has yet to establish a clear crypto law, and uncertainty remains over future taxation and compliance requirements.
- Competition from Domestic Exchanges: Indian exchanges like WazirX, CoinDCX, and CoinSwitch Kuber already have a significant market share.
- Foreign Exchange Restrictions: The Reserve Bank of India (RBI) remains skeptical about crypto, and restrictions on cross-border crypto transactions could be a hurdle.
How Kraken Plans to Capture the Indian Market
Kraken is expected to take a strategic approach by focusing on:
- Regulatory Compliance: Acquiring necessary licenses and ensuring full compliance with Indian laws.
- Localized Services: Offering INR trading pairs and UPI-based deposits and withdrawals.
- Educational Initiatives: Conducting crypto literacy programs to increase adoption among Indian users.
- Strategic Partnerships: Collaborating with fintech firms and local businesses to build trust and expand its user base.
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Conclusion: A New Era for Crypto in India?
Kraken’s return to India could mark a turning point for the country’s crypto landscape. If the exchange successfully navigates regulatory challenges and provides a secure trading experience, it could establish itself as a major player in one of the world’s fastest-growing crypto markets.
With India’s crypto industry projected to grow to $500 billion by 2030, Kraken’s re-entry in 2025 could be a game-changer for Indian investors looking for a reliable global exchange.