Anyone who’s in search of a cryptocurrency trade to make use of for his or her digital belongings, crypto buying and selling, and futures buying and selling needs to be involved about safety and buyer assist. In any case, you’ll be trusting that trade together with your cash and investments! You ought to be taking a detailed take a look at their safety measures and what they’re doing to make their platform secure for you.
Kraken is among the largest and most widespread cryptocurrency exchanges on this planet. Earlier than you join an account with this main crypto trade, let’s reply a very powerful query: Is Kraken secure? On this Kraken evaluate, we’ll deal with a very powerful 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.
About Kraken: Historical past and Overview

Let’s begin with a short historical past and overview of Kraken. Kraken’s included 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 marketing consultant for Mt. Gox and (accurately) anticipated that the corporate would fail. He began engaged on Kraken as a alternative.
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 below 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 trade 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 enable 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 Protected Crypto Alternate?

You’re questioning if Kraken is secure, so let’s begin with our general opinion. Sure, we consider Kraken is secure in comparison with different exchanges. The corporate has had a couple of ups and downs through the years, however they’ve at all times prioritized preserving their customers secure, preserving Kraken charges low, and defending their belongings and your financial institution accounts.
One of many causes that Kraken was chosen to supervise the aftermath of Mt. Gox’s failure is that they’d skilled no safety breaches. They labored with regulators to trace down lacking belongings 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 worldwide crew of prime safety professionals who take a risk-based strategy to making sure our purchasers’ belongings 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 critically they take your security.
Professional Tip:
Do you know that you would be able to commerce over 200 distinctive cryptocurrencies with Kraken?
Kraken Safety Measures and How They Shield Customers

Now, let’s stroll by a few of Kraken’s most necessary safety measures and the way they will 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 technique comparable to a passkey, texted code, authenticator app, or fingerprint scan. Among the finest methods to protect your Kraken account is by enabling 2FA.
Along with normal 2FA, Kraken has additionally applied one thing they name Step-up 2FA. It’s an additional step that protects you from unauthorized modifications to your 2FA settings. In case you or anybody else requests a change to your Kraken account, you’ll be prompted to verify 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 info is compromised, the Grasp Key will probably be required to reset your password or take some other account motion. For that purpose, the Grasp Key needs to be a special technique than what you utilize on your normal 2FA.
A {hardware} safety key is the really helpful Grasp Key choice for Kraken. In case you favor, you should utilize a static password or authenticator app, however these strategies are typically much less safe, which is why Kraken recommends a {hardware} safety key as a substitute.
Passkeys
Passkeys are an internet site or app-specific type of 2FA, which means that no person can use a passkey from a special website 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 unimaginable for anyone to entry your account with out your permission.
Professional Tip:
Do you know that you would be able to 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 deal with, 2FA, or Grasp Key.
Even when somebody had been to attempt to make unauthorized modifications to your account, the GSL places a ready interval in place, supplying 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 consider Kraken falls wanting a few of its opponents is insurance coverage. Cryptocurrency exchanges should not thought of to be financial savings establishments. In different phrases, they’re not banks or credit score unions, and as such, deposits should not coated by the Federal Deposit Insurance coverage Company, or FDIC.
Whereas an absence of FDIC insurance coverage is the norm for crypto exchanges, lots 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 make the most of Kraken’s security measures. You received’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 to be able to assist corporations 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 value 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 instances and so has Binance. That stated, you’ll have to make your personal resolution about whether or not you’re feeling comfy utilizing Kraken.
Professional Tip:
Do you know that you would be able to commerce over 200 distinctive cryptocurrencies with Kraken?
Kraken and Regulatory Compliance
The difficulty of regulatory compliance is one which looms massive for crypto exchanges like Kraken. Cryptocurrency is decentralized, which signifies that regulatory compliance is commonly 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 categorized as securities.
In 2022, the SEC accused Kraken of providing unregistered securities by 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 trade for 5 years. The go well with additionally named Kraken’s guardian corporations, Payward Inc. and Payward Ventures. A choose disallowed Kraken’s protection, which many consultants consider 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 threat – and probably an costly one – for Kraken.
Kraken Buyer Help
What would you do in the event you grew to become a Kraken person and had a safety subject that you just couldn’t resolve by yourself? It’s an necessary query, which is why our Kraken evaluate 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.
- Dwell chat assist, which is obtainable on the web site or on the Kraken app.
- E-mail assist.
- Telephone assist is obtainable 24/7 within the US, EU, and UK.
Understand that in the event you do have to contact assist, no person at Kraken will ever ask you on your password, two-factor authentication code, machine approval code, pockets deal with, or Grasp Key. Additionally they received’t ask you to make any modifications to your account safety settings or to allow them to entry your machine remotely.
Is Kraken Protected? Our Closing Verdict
The ultimate take of our Kraken evaluate is that Kraken is secure to make use of. There are a number of layers of safety. In case 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 trade is barely pretty much as good as how carefully you guard it. Selecting a weak password or sharing your info with a 3rd occasion will compromise your safety and will result in you shedding your digital belongings. We advise preserving every part personal to maintain your self secure.
FAQ
You may 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 belongings 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 critically. You’ll want to supply:
Proof of deal with (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.
In case you’re within the US, you’ll want to supply both a legitimate Social Safety Quantity (SSN) or Particular person Taxpayer Identification Quantity (ITIN).
It could take a number of days after you submit proof of identification on your account to be verified.
No. Right now, Kraken is obtainable 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 evaluate.
Like lots of on-line buying and selling platforms, Kraken permits for fractional shares. The minimal quantity will differ relying on which crypto coin you need to purchase. An instance can be Bitcoin, the place the minimal commerce quantity is simply $1.
We predict that Kraken is finest suited to intermediate or superior crypto traders who already know the ropes. In case you resolve to make use of Kraken as a newbie, you must count on to come across a studying curve. Spending a while studying by Kraken’s articles and FAQ, plus watching their movies, may also help you stand up to hurry.
Kraken is free to affix. Its buying and selling charges are, in our opinion, a bit complicated in comparison with another crypto exchanges. In case you make a easy commerce, there’s an trade charge and a ramification charge, and also you received’t know what the whole is till you provoke a commerce. The excellent news is that in the event you commerce frequently, the charges are decrease!