Kraken Returns to India as Crypto Regulation Looms

Cryptocurrency exchange Kraken is planning to re-enter the Indian market, according to multiple sources. The move comes as the Indian government is reportedly considering a regulatory framework for cryptocurrencies, which could open up new opportunities for exchanges in the country.

The Indian cryptocurrency market has been growing rapidly in recent years, despite the lack of clear regulations. According to a report by the Economic Times, the Indian cryptocurrency market is expected to reach $2.1 billion by 2025, up from $12.9 million in 2020. Kraken's re-entry into the Indian market could help drive this growth, as it is one of the largest cryptocurrency exchanges in the world.

Kraken first entered the Indian market in 2018, but it withdrew its services in 2019 due to regulatory uncertainty. Since then, the Indian government has taken a more favorable stance towards cryptocurrencies, and the Reserve Bank of India has indicated that it is open to the idea of a central bank digital currency.

In addition to Kraken, other international cryptocurrency exchanges such as Binance and Coinbase have also expressed interest in entering the Indian market. However, they have been waiting for the government to provide clarity on the regulatory framework before making a move.

The Indian government has been considering a bill to regulate cryptocurrencies since 2019, but it has not yet been passed. The bill, called the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, aims to create a regulatory framework for cryptocurrencies and to prevent their use for illegal activities.

Despite the lack of clear regulations, the Indian cryptocurrency market has been booming. According to a report by the Blockchain Research Institute, the Indian cryptocurrency market grew by 600% in 2020, and it is expected to continue to grow in the coming years.

Kraken's re-entry into the Indian market could help to drive this growth, as it is one of the most popular cryptocurrency exchanges in the world. The exchange offers a wide range of cryptocurrencies and trading pairs, and it has a strong reputation for security and reliability.

However, Kraken will face stiff competition from other international exchanges and from local exchanges such as WazirX