Anybody who’s looking for a cryptocurrency exchange to use for their digital assets, crypto trading, and futures trading should be concerned about security and customer support. After all, you’ll be trusting that exchange with your money and investments! You should be taking a close look at their security measures and what they’re doing to make their platform safe for you.
Kraken is one of the largest and most popular cryptocurrency exchanges in the world. Before you sign up for an account with this leading crypto exchange, let’s answer the most important question: Is Kraken safe? In this Kraken review, we’ll focus on the most important security measures, including things like encryption, two-factor authentication, regulation, insurance, and more, to help you decide if you should buy crypto or conduct otc trading on Kraken.
About Kraken: History and Overview
Let’s start with a brief history and overview of Kraken. Kraken’s incorporated as Payward, Inc. The company was founded back in 2011 and was one of the first Bitcoin exchanges to be listed on Bloomberg Terminal.
Kraken was started by Jesse Powell, Thanh Luu, and Michael Gronager. Powell was working as a consultant for Mt. Gox and (correctly) anticipated that the company would fail. He started working on Kraken as a replacement.
By March of 2014. Kraken had secured a $5 million investment from Hummingbird Ventures. From that initial investment, Kraken has grown steadily over the years. Here are a few key moments in Kraken’s history.
- 2016: Kraken completes its Series B round of investments, led by SBI Group.
- 2017: Kraken acquires Cryptowatch, a crypto charting and trading platform.
- 2019: Kraken acquires Crypto Facilities.
- 2020: Kraken becomes the first crypto exchange to be granted a special purpose depository institution (SPDI) charter.
- 2021: Kraken releases its mobile app.
- 2022: Kraken launches its own NFT marketplace.
- 2023: Kraken announces it will allow trading of stocks and ETFs.
- 2024: Kraken launches its crypto wallet.
As of January of 2025, Kraken has over 9 million users in 190 countries worldwide. The company is valued at $5.5 billion.
Is Kraken a Safe Crypto Exchange?
You’re wondering if Kraken is safe, so let’s start with our overall opinion. Yes, we believe Kraken is safe compared to other exchanges. The company has had a few ups and downs over the years, but they’ve always prioritized keeping their users safe, keeping Kraken fees low, and protecting their assets and your bank accounts.
One of the reasons that Kraken was chosen to oversee the aftermath of Mt. Gox’s failure is that they had experienced no security breaches. They worked with regulators to track down missing assets and restore them to users.
Here’s part of what Kraken has to say about the company’s commitment to user safety and security:
We’ve assembled a global team of top security professionals who take a risk-based approach to ensuring our clients’ assets are protected at the highest levels while maintaining exceptional performance and an unparalleled client experience.
In the next section, we’ll take a deep dive into Kraken’s security measures to help you understand just how seriously they take your safety.
Pro Tip:
Did you know that you can trade over 200 unique cryptocurrencies with Kraken?
Kraken Security Measures and How They Protect Users
Now, let’s walk through some of Kraken’s most important security measures and how they can protect you as a user.
Two-Factor Authentication
Two-factor authentication, or 2FA, is a security measure that requires users to sign in first with a password, then with a secondary method such as a passkey, texted code, authenticator app, or fingerprint scan. One of the best ways to shield your Kraken account is by enabling 2FA.
In addition to standard 2FA, Kraken has also implemented something they call Step-up 2FA. It’s an extra step that protects you from unauthorized changes to your 2FA settings. If you or anyone else requests a change to your Kraken account, you’ll be prompted to confirm your sign-in again with a new scan or code.
Master Key
Kraken strongly encourages users to set up a Master Key as an added measure to protect their accounts. In the event your password or account information is compromised, the Master Key will be required to reset your password or take any other account action. For that reason, the Master Key should be a different method than what you use for your standard 2FA.
A hardware security key is the recommended Master Key option for Kraken. If you prefer, you can use a static password or authenticator app, but these methods are generally less secure, which is why Kraken recommends a hardware security key instead.
Passkeys
Passkeys are a website or app-specific form of 2FA, meaning that nobody can use a passkey from a different site or app to sign into your Kraken account. Kraken recommends that users enable passkeys as part of their 2FA, since they’re the most secure form of authentication.
Most passkeys take the form of either a fingerprint scan or facial recognition. They’re standardized by the FIDO Alliance and make it nearly impossible for anybody to access your account without your permission.
Pro Tip:
Did you know that you can trade over 200 unique cryptocurrencies with Kraken?
Global Settings Lock (GSL)
The Global Settings Lock, or GSL, is an added layer of protection that can be accessed from your Kraken settings. Once it’s on, nobody will be able to add a withdrawal account, reset your password, or change your email address, 2FA, or Master Key.
Even if someone were to try to make unauthorized changes to your account, the GSL puts a waiting period in place, giving you time to react and re-secure your account. Kraken recommends turning GSL on and not allowing it to be overridden with your Master Key.
Are Kraken Deposits and Holdings Insured?
One area where we believe Kraken falls short of some of its competitors is insurance. Cryptocurrency exchanges are not considered to be savings institutions. In other words, they’re not banks or credit unions, and as such, deposits are not covered by the Federal Deposit Insurance Corporation, or FDIC.
While a lack of FDIC insurance is the norm for crypto exchanges, many of Kraken’s competitors carry separate crime insurance to protect users’ deposits and holdings from security breaches caused by negligence on their part. Kraken doesn’t.
What this means is that it’s up to you as a user to take advantage of Kraken’s security features. You won’t be protected by insurance if your account is compromised or hacked.
Has Kraken Ever Had a Security Breach?
Kraken prides itself on its security. They provide plenty of ways for users to protect themselves, but they’re not immune to security issues. In 2024, a so-called researcher discovered a flaw after a Kraken update and within a few days, had shared it with others and exploited it to steal about $3 million in cryptocurrency.
Sometimes, intrusions like this one are a form of “white hat hacking,” where researchers find security breaches in order to help companies fix them. The 2024 Kraken breach was not carried out to be helpful, and we know that because the people behind the breach have refused to return the money.
What is worth noting is that Kraken has been around since 2011, and this was its first and (so far) only security breach. As a comparison, Coinbase has been hacked several times and so has Binance. That said, you’ll need to make your own decision about whether you feel comfortable using Kraken.
Pro Tip:
Did you know that you can trade over 200 unique cryptocurrencies with Kraken?
Kraken and Regulatory Compliance
The issue of regulatory compliance is one that looms large for crypto exchanges like Kraken. Cryptocurrency is decentralized, which means that regulatory compliance is often seen as a gray area. Many crypto exchanges, including Kraken, have been locked in legal action with the SEC over whether cryptocurrencies are classified as securities.
In 2022, the SEC accused Kraken of offering unregistered securities through its cryptocurrency staking program. Kraken settled with the SEC in 2023, and as of 2025, they are once again offering cryptocurrency staking to users.
The SEC filed a second lawsuit in 2023, claiming that Kraken had been operating as an unsecured securities exchange for five years. The suit also named Kraken’s parent companies, Payward Inc. and Payward Ventures. A judge disallowed Kraken’s defense, which many experts believe puts the SEC on solid footing in terms of claiming regulatory power over cryptocurrency exchanges.
What does all of this mean for you as a crypto investor? The bottom line is that SEC disputes with Kraken don’t put your investments or deposits at risk. They are a risk – and potentially an expensive one – for Kraken.
Kraken Customer Support
What would you do if you became a Kraken user and had a security issue that you couldn’t resolve on your own? It’s an important question, which is why our Kraken review wouldn’t be complete without information about the support that’s available.
Kraken provides support via multiple channels:
- Online self-support library, including FAQ, videos, blog posts, and detailed instructions related to security, trading, and more.
- Live chat support, which is available on the website or on the Kraken app.
- Email support.
- Phone support is available 24/7 in the US, EU, and UK.
Keep in mind that if you do need to contact support, nobody at Kraken will ever ask you for your password, two-factor authentication code, device approval code, wallet address, or Master Key. They also won’t ask you to make any changes to your account security settings or to let them access your device remotely.
Is Kraken Safe? Our Final Verdict
The final take of our Kraken review is that Kraken is safe to use. There are multiple layers of security. If you avail yourself of all of them, including 2FA, passkeys, a Master Key, and Global Settings Lock, it will be very difficult for anyone to access your account without authorization.
It’s important to note here that your security on any exchange is only as good as how closely you guard it. Choosing a weak password or sharing your information with a third party will compromise your security and may lead to you losing your digital assets. We suggest keeping everything private to keep yourself safe.
FAQ
You can fund your Kraken account using a Visa or Mastercard credit or debit card, via an ACH or wire transfer from your bank, or using assets in a digital wallet. There may be a holding period of up to 72 hours before deposits are available.
Kraken takes account documentation seriously. You’ll need to provide:
Proof of address (e.g. mailed bank statement, utility bill, property tax bill, or jury summons, among others.}
Face ID in the form of a driver’s license, state-issued ID, passport, or green card.
If you’re in the US, you’ll need to provide either a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
It may take several days after you submit proof of identity for your account to be verified.
No. At this time, Kraken is available in 48 states and the District of Columbia. It’s not available in New York or Washington. Additional states may be added in the future, and if they are, we’ll update this review.
Like a lot of online trading platforms, Kraken allows for fractional shares. The minimum amount will vary depending on which crypto coin you want to buy. An example would be Bitcoin, where the minimum trade amount is just $1.
We think that Kraken is best suited to intermediate or advanced crypto investors who already know the ropes. If you decide to use Kraken as a beginner, you should expect to encounter a learning curve. Spending some time reading through Kraken’s articles and FAQ, plus watching their videos, can help you get up to speed.
Kraken is free to join. Its trading fees are, in our opinion, a bit complex compared to some other crypto exchanges. If you make a simple trade, there’s an exchange fee and a spread fee, and you won’t know what the total is until you initiate a trade. The good news is that if you trade regularly, the rates are lower!
