Anyone who’s on the lookout for a cryptocurrency change to make use of for his or her digital property, crypto buying and selling, and futures buying and selling ought to be involved about safety and buyer assist. In spite of everything, you’ll be trusting that change together with your cash and investments! You ought to be taking an in depth take a look at their safety measures and what they’re doing to make their platform secure for you.
Kraken is without doubt one of the largest and hottest cryptocurrency exchanges on the earth. Earlier than you join an account with this main crypto change, let’s reply an important query: Is Kraken secure? On this Kraken assessment, we’ll concentrate on an important safety measures, together with issues like encryption, two-factor authentication, regulation, insurance coverage, and extra, that will help you resolve if you should purchase crypto or conduct OTC buying and selling on Kraken.
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About Kraken: Historical past and Overview
Let’s begin with a short historical past and overview of Kraken. Kraken’s integrated as Payward, Inc. The corporate was based again in 2011 and was one of many first Bitcoin exchanges to be listed on Bloomberg Terminal.
Kraken was began by Jesse Powell, Thanh Luu, and Michael Gronager. Powell was working as a guide for Mt. Gox and (accurately) anticipated that the corporate would fail. He began engaged on Kraken as a substitute.
By March of 2014. Kraken had secured a $5 million funding from Hummingbird Ventures. From that preliminary funding, Kraken has grown steadily through the years. Listed here are a couple of key moments in Kraken’s historical past.
2016: Kraken completes its Collection B spherical of investments, led by SBI Group.
2017: Kraken acquires Cryptowatch, a crypto charting and buying and selling platform.
2019: Kraken acquires Crypto Services.
2020: Kraken turns into the primary crypto change to be granted a particular function depository establishment (SPDI) constitution.
2021: Kraken releases its cellular app.
2022: Kraken launches its personal NFT market.
2023: Kraken declares it is going to permit buying and selling of shares and ETFs.
2024: Kraken launches its crypto pockets.
As of January of 2025, Kraken has over 9 million customers in 190 nations worldwide. The corporate is valued at $5.5 billion.
Is Kraken a Secure Crypto Alternate?
You’re questioning if Kraken is secure, so let’s begin with our total opinion. Sure, we imagine Kraken is secure in comparison with different exchanges. The corporate has had a couple of ups and downs through the years, however they’ve all the time prioritized holding their customers secure, holding Kraken charges low, and defending their property and your financial institution accounts.
One of many causes that Kraken was chosen to supervise the aftermath of Mt. Gox’s failure is that that they had skilled no safety breaches. They labored with regulators to trace down lacking property and restore them to customers.
Right here’s a part of what Kraken has to say in regards to the firm’s dedication to person security and safety:
We’ve assembled a world staff of prime safety professionals who take a risk-based method to making sure our purchasers’ property are protected on the highest ranges whereas sustaining distinctive efficiency and an unparalleled shopper expertise.
Within the subsequent part, we’ll take a deep dive into Kraken’s safety measures that will help you perceive simply how severely they take your security.
Professional Tip:
Do you know that you may commerce over 200 distinctive cryptocurrencies with Kraken?
Kraken Safety Measures and How They Shield Customers
Now, let’s stroll by means of a few of Kraken’s most necessary safety measures and the way they’ll defend you as a person.
Two-Issue Authentication
Two-factor authentication, or 2FA, is a safety measure that requires customers to sign up first with a password, then with a secondary methodology resembling a passkey, texted code, authenticator app, or fingerprint scan. Among the finest methods to defend your Kraken account is by enabling 2FA.
Along with customary 2FA, Kraken has additionally carried out one thing they name Step-up 2FA. It’s an additional step that protects you from unauthorized adjustments to your 2FA settings. Should you or anybody else requests a change to your Kraken account, you’ll be prompted to substantiate your sign-in once more with a brand new scan or code.
Grasp Key
Kraken strongly encourages customers to arrange a Grasp Key as an added measure to guard their accounts. Within the occasion your password or account data is compromised, the Grasp Key shall be required to reset your password or take another account motion. For that cause, the Grasp Key ought to be a special methodology than what you utilize on your customary 2FA.
A {hardware} safety secret is the really helpful Grasp Key possibility for Kraken. Should you desire, you need to use a static password or authenticator app, however these strategies are usually much less safe, which is why Kraken recommends a {hardware} safety key as a substitute.
Passkeys
Passkeys are a web site or app-specific type of 2FA, that means that no person can use a passkey from a special web site or app to signal into your Kraken account. Kraken recommends that customers allow passkeys as a part of their 2FA, since they’re probably the most safe type of authentication.
Most passkeys take the type of both a fingerprint scan or facial recognition. They’re standardized by the FIDO Alliance and make it practically unattainable for anyone to entry your account with out your permission.
Professional Tip:
Do you know that you may commerce over 200 distinctive cryptocurrencies with Kraken?
International Settings Lock (GSL)
The International Settings Lock, or GSL, is an added layer of safety that may be accessed out of your Kraken settings. As soon as it’s on, no person will have the ability to add a withdrawal account, reset your password, or change your e-mail tackle, 2FA, or Grasp Key.
Even when somebody have been to attempt to make unauthorized adjustments to your account, the GSL places a ready interval in place, providing you with time to react and re-secure your account. Kraken recommends turning GSL on and never permitting it to be overridden together with your Grasp Key.
Are Kraken Deposits and Holdings Insured?
One space the place we imagine Kraken falls in need of a few of its opponents is insurance coverage. Cryptocurrency exchanges will not be thought of to be financial savings establishments. In different phrases, they’re not banks or credit score unions, and as such, deposits will not be coated by the Federal Deposit Insurance coverage Company, or FDIC.
Whereas an absence of FDIC insurance coverage is the norm for crypto exchanges, a lot of Kraken’s opponents carry separate crime insurance coverage to guard customers’ deposits and holdings from safety breaches brought on by negligence on their half. Kraken doesn’t.
What this implies is that it’s as much as you as a person to reap the benefits of Kraken’s safety features. You gained’t be protected by insurance coverage in case your account is compromised or hacked.
Has Kraken Ever Had a Safety Breach?
Kraken prides itself on its safety. They supply loads of methods for customers to guard themselves, however they’re not proof against safety points. In 2024, a so-called researcher found a flaw after a Kraken replace and inside a couple of days, had shared it with others and exploited it to steal about $3 million in cryptocurrency.
Generally, intrusions like this one are a type of “white hat hacking,” the place researchers discover safety breaches as a way to assist firms repair them. The 2024 Kraken breach was not carried out to be useful, and we all know that as a result of the individuals behind the breach have refused to return the cash.
What’s price noting is that Kraken has been round since 2011, and this was its first and (to date) solely safety breach. As a comparability, Coinbase has been hacked a number of occasions and so has Binance. That mentioned, you’ll have to make your individual resolution about whether or not you’re feeling comfy utilizing Kraken.
Professional Tip:
Do you know that you may commerce over 200 distinctive cryptocurrencies with Kraken?
Kraken and Regulatory Compliance
The problem of regulatory compliance is one which looms giant for crypto exchanges like Kraken. Cryptocurrency is decentralized, which signifies that regulatory compliance is usually seen as a grey space. Many crypto exchanges, together with Kraken, have been locked in authorized motion with the SEC over whether or not cryptocurrencies are categorised as securities.
In 2022, the SEC accused Kraken of providing unregistered securities by means of its cryptocurrency staking program. Kraken settled with the SEC in 2023, and as of 2025, they’re as soon as once more providing cryptocurrency staking to customers.
The SEC filed a second lawsuit in 2023, claiming that Kraken had been working as an unsecured securities change for 5 years. The go well with additionally named Kraken’s mum or dad firms, Payward Inc. and Payward Ventures. A decide disallowed Kraken’s protection, which many specialists imagine places the SEC on strong footing when it comes to claiming regulatory energy over cryptocurrency exchanges.
What does all of this imply for you as a crypto investor? The underside line is that SEC disputes with Kraken don’t put your investments or deposits in danger. They’re a danger – and doubtlessly an costly one – for Kraken.
Kraken Buyer Assist
What would you do for those who grew to become a Kraken person and had a safety concern that you just couldn’t resolve by yourself? It’s an necessary query, which is why our Kraken assessment wouldn’t be full with out details about the assist that’s accessible.
Kraken gives assist through a number of channels:
On-line self-support library, together with FAQ, movies, weblog posts, and detailed directions associated to safety, buying and selling, and extra.
Stay chat assist, which is accessible on the web site or on the Kraken app.
E-mail assist.
Cellphone assist is accessible 24/7 within the US, EU, and UK.
Needless to say for those who do have to contact assist, no person at Kraken will ever ask you on your password, two-factor authentication code, system approval code, pockets tackle, or Grasp Key. In addition they gained’t ask you to make any adjustments to your account safety settings or to allow them to entry your system remotely.
Is Kraken Secure? Our Remaining Verdict
The ultimate take of our Kraken assessment is that Kraken is secure to make use of. There are a number of layers of safety. Should you avail your self of all of them, together with 2FA, passkeys, a Grasp Key, and International Settings Lock, it will likely be very tough for anybody to entry your account with out authorization.
It’s necessary to notice right here that your safety on any change is just nearly as good as how carefully you guard it. Selecting a weak password or sharing your data with a 3rd get together will compromise your safety and will result in you dropping your digital property. We recommend holding every thing non-public to maintain your self secure.
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FAQs
You possibly can fund your Kraken account utilizing a Visa or Mastercard credit score or debit card, through an ACH or wire switch out of your financial institution, or utilizing property in a digital pockets. There could also be a holding interval of as much as 72 hours earlier than deposits can be found.
Kraken takes account documentation severely. You’ll want to offer:
Proof of tackle (e.g. mailed financial institution assertion, utility invoice, property tax invoice, or jury summons, amongst others.}Face ID within the type of a driver’s license, state-issued ID, passport, or inexperienced card.Should you’re within the US, you’ll want to offer both a sound Social Safety Quantity (SSN) or Particular person Taxpayer Identification Quantity (ITIN).
It might take a number of days after you submit proof of id on your account to be verified.
No. At the moment, Kraken is accessible in 48 states and the District of Columbia. It’s not accessible in New York or Washington. Extra states could also be added sooner or later, and if they’re, we’ll replace this assessment.
Like numerous on-line buying and selling platforms, Kraken permits for fractional shares. The minimal quantity will differ relying on which crypto coin you wish to purchase. An instance could be Bitcoin, the place the minimal commerce quantity is simply $1.
We predict that Kraken is greatest suited to intermediate or superior crypto traders who already know the ropes. Should you resolve to make use of Kraken as a newbie, it is best to count on to come across a studying curve. Spending a while studying by means of Kraken’s articles and FAQ, plus watching their movies, might help you stand up to hurry.
Kraken is free to hitch. Its buying and selling charges are, in our opinion, a bit complicated in comparison with another crypto exchanges. Should you make a easy commerce, there’s an change price and an expansion price, and also you gained’t know what the entire is till you provoke a commerce. The excellent news is that for those who commerce often, the charges are decrease!
