Kraken Evaluation: Is Kraken Secure?


Anyone who’s in search of a cryptocurrency change to make use of for his or her digital belongings, crypto buying and selling, and futures buying and selling must be involved about safety and buyer assist. In spite of everything, you’ll be trusting that change together with your cash and investments! Try 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 likely one of the largest and most in style cryptocurrency exchanges on this planet. 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 deal with an important safety measures, together with issues like encryption, two-factor authentication, regulation, insurance coverage, and extra, that can assist you resolve in case you ought to 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 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 advisor 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 over time. Listed below are just a few 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 Amenities.
- 2020: Kraken turns into the primary crypto change to be granted a particular goal depository establishment (SPDI) constitution.
- 2021: Kraken releases its cellular app.
- 2022: Kraken launches its personal NFT market.
- 2023: Kraken pronounces it’ll 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 international locations 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 just a few ups and downs over time, however they’ve all the time prioritized retaining their customers secure, retaining 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 concerning 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’ 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 can assist you perceive simply how significantly they take your security.
Professional Tip:
Do you know that you could commerce over 200 distinctive cryptocurrencies with Kraken?
Kraken Safety Measures and How They Defend Customers

Now, let’s stroll via a few of Kraken’s most vital safety measures and the way they’ll shield you as a person.
Two-Issue Authentication
Two-factor authentication, or 2FA, is a safety measure that requires customers to register first with a password, then with a secondary technique resembling a passkey, texted code, authenticator app, or fingerprint scan. Among the finest methods to protect your Kraken account is by enabling 2FA.
Along with customary 2FA, Kraken has additionally applied one thing they name Step-up 2FA. It’s an additional step that protects you from unauthorized adjustments to your 2FA settings. If you happen to 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 data is compromised, the Grasp Key might be required to reset your password or take some other account motion. For that motive, the Grasp Key must be a unique technique than what you employ on your customary 2FA.
A {hardware} safety key is the really helpful Grasp Key possibility for Kraken. If you happen to 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 one can use a passkey from a unique 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 almost inconceivable for anyone to entry your account with out your permission.
Professional Tip:
Do you know that you could 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 one will be capable 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, 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 imagine Kraken falls in need of a few of its opponents is insurance coverage. Cryptocurrency exchanges usually are not thought of to be financial savings establishments. In different phrases, they’re not banks or credit score unions, and as such, deposits usually are 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 attributable to 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 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 just a few 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 folks 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 this point) 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 choice about whether or not you are feeling snug utilizing Kraken.
Professional Tip:
Do you know that you could 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 implies 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 categorised as securities.
In 2022, the SEC accused Kraken of providing unregistered securities via 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 swimsuit additionally named Kraken’s mum or dad firms, Payward Inc. and Payward Ventures. A decide disallowed Kraken’s protection, which many consultants imagine places the SEC on strong footing by way of 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 probably an costly one – for Kraken.
Kraken Buyer Assist
What would you do in case you turned a Kraken person and had a safety subject that you simply couldn’t resolve by yourself? It’s an vital query, which is why our Kraken assessment wouldn’t be full with out details about the assist that’s out there.
Kraken supplies 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 out there on the web site or on the Kraken app.
- Electronic mail assist.
- Cellphone assist is out there 24/7 within the US, EU, and UK.
Take into account that in case you do have to contact assist, no one at Kraken will ever ask you on your password, two-factor authentication code, gadget 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 gadget remotely.
Is Kraken Secure? Our Last 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. If you happen to avail your self of all of them, together with 2FA, passkeys, a Grasp Key, and International Settings Lock, it is going to be very tough for anybody to entry your account with out authorization.
It’s vital to notice right here that your safety on any change is barely nearly as good as how carefully you guard it. Selecting a weak password or sharing your data with a 3rd social gathering will compromise your safety and should result in you dropping your digital belongings. We advise retaining every thing non-public to maintain your self secure.
FAQ
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 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 significantly. 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.
If you happen to’re within the US, you’ll want to offer both a sound 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 out there in 48 states and the District of Columbia. It’s not out there in New York or Washington. Extra states could also be added sooner or later, and if they’re, we’ll replace this assessment.
Like quite a lot of on-line buying and selling platforms, Kraken permits for fractional shares. The minimal quantity will fluctuate relying on which crypto coin you wish to purchase. An instance can be Bitcoin, the place the minimal commerce quantity is simply $1.
We expect that Kraken is greatest suited to intermediate or superior crypto buyers who already know the ropes. If you happen to resolve to make use of Kraken as a newbie, it’s best to count on to come across a studying curve. Spending a while studying via Kraken’s articles and FAQ, plus watching their movies, may 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. If you happen to make a easy commerce, there’s an change price and an expansion price, and also you gained’t know what the whole is till you provoke a commerce. The excellent news is that in case you commerce often, the charges are decrease!