Kraken: licences, security, fees and reviews
Centralized exchange
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Key facts
- Type
- Centralized exchange
- Exchange launched
- 2013
- Country of registration
- United States
- Operator
- Payward, Inc.
- Official site
- kraken.com
Key facts checked on 28 October 2026 against official sources and regulator registers.
What is Kraken
Kraken is a centralised cryptocurrency exchange run by companies of the Payward group, whose parent is Payward, Inc. in the United States. The company was founded on 28 July 2011 and the exchange opened for trading on 10 September 2013. It offers spot, margin, futures, staking and, in some regions, stocks and tokenised stocks.
Good to know
- Kraken's Global Terms do not apply in Brazil, Canada or the EEA. EEA clients contract with Irish group companies (Payward Europe Solutions for crypto, Payward Ireland for e-money); Canada and Brazil have their own terms and entities. ↗
- Clients in the EEA cannot deposit or trade a list of assets that includes USDT, DAI, PYUSD, RLUSD, USDe and Monero (XMR). Canada has a similar list that also includes USDT. ↗
- In the UK, crypto services are not covered by the Financial Ombudsman Service or the FSCS. Fiat held with Payward Services Limited is e-money that is safeguarded in a separate account but is not FSCS-protected. ↗
- In Australia, Kraken's exchange runs under an AUSTRAC registration and holds no Australian financial services licence for it; Kraken derivatives are offered only to wholesale clients through Beaufort Fiduciaries (AFSL 545124). ↗
- Kraken states that it is not licensed or regulated in Singapore. ↗
- Under the Global Terms, eligible assets of clients of several Kraken entities, including the US and Australian ones, are enrolled in on-chain staking automatically unless the client opts out. ↗
- Some US state money transmitter licences held by Payward Interactive, Inc., such as those in Virginia, Tennessee and Wisconsin, do not cover virtual currency, and any surety bond may not cover all customer losses. ↗
- In Brazil, Payward Brasil has served clients since 1 October 2025. Kraken describes it as a pre-existing virtual asset service provider under the transitional rules of Central Bank of Brazil Resolution 520/2025. ↗
- xStocks (tokenised stocks) are offered by Payward Digital Solutions Ltd in Bermuda and are not available in the US, UK, Canada or Australia. ↗
- The SEC's 2023 lawsuit alleged that Kraken commingled customer money and crypto with its own. The SEC dismissed it with prejudice in March 2025 and said the dismissal was not based on an assessment of the merits. ↗
Services
| Parameter | Details |
|---|---|
| Spot trading | Order-book spot trading on Kraken Pro with maker-taker fees; instant buy, sell and convert in the Kraken app. |
| Margin | Margin trading for eligible clients, subject to geographic and eligibility limits; not available to clients in Canada. |
| Derivatives | Futures and perpetuals; in the US via NinjaTrader Clearing, LLC (Kraken Derivatives US), a CFTC-registered FCM. Closed to UK retail and Canadian clients. |
| Staking / Earn | On-chain staking with commission deducted from rewards; availability varies by country. |
| Custody / wallet | Digital asset custody for eligible clients through Kraken Financial, a Wyoming-chartered Special Purpose Depository Institution. |
| Stocks and ETFs | Commission-free US stocks and ETFs through Kraken Securities LLC, an SEC-registered broker-dealer; currently US only. |
Licences and registrations
| Jurisdiction | Entity | Licence / registration | Regulator |
|---|---|---|---|
| United States | Payward Interactive, Inc. | Money services business, MSB registration No. 31000337955278 (per Kraken); listed in FinCEN's MSB Registrant Search (searched 2026-10-28) | FinCEN |
| United States | Kraken Securities LLC | Broker-dealer, SEC file No. 8-71030; FINRA member, status active | SEC / FINRA |
| United States | Payward Financial, Inc. (Kraken Financial) | Wyoming-chartered Special Purpose Depository Institution (digital asset custody) | Wyoming Division of Banking |
| United States | NinjaTrader Clearing, LLC (Kraken Derivatives US) | Futures commission merchant, NFA ID 0309379 | CFTC / NFA |
| European Union | Payward Europe Solutions Limited | MiCA crypto-asset service provider (CBI ref. C468360), authorised 25 June 2025; custody, exchange, order execution, transfers and more, in 30 EEA countries | Central Bank of Ireland |
| European Union | Payward Global Solutions Limited | MiCA crypto-asset service provider (CBI ref. C559106), authorised 25 June 2025 to operate a trading platform; services in Ireland and Cyprus | Central Bank of Ireland |
| European Union | Payward Ireland Limited | E-money institution, reference No. C453020 | Central Bank of Ireland |
| Cyprus (EU) | Payward Europe Digital Solutions (CY) Limited | Investment firm (MiFID), licence No. 342/17 dated 13 November 2017 | Cyprus Securities and Exchange Commission (CySEC) |
| United Kingdom | Payward Limited | Registered cryptoasset firm, FRN 928768, since 23 November 2021 (Money Laundering Regulations 2017); FCA register checked 2026-10-28 | Financial Conduct Authority (FCA) |
| United Kingdom | Payward Services Limited | Authorised electronic money institution, FRN 1010381, since 20 February 2025; FCA register checked 2026-10-28 | Financial Conduct Authority (FCA) |
| United Kingdom | Crypto Facilities Limited | Authorised investment firm, FRN 757895 | Financial Conduct Authority (FCA) |
| Canada | Kraken | Restricted dealer registered with the Ontario Securities Commission and the securities regulators of each province and territory | Canadian securities regulators |
| Canada | Payward Canada, Inc. | Money services business, registration No. M19343731 | FINTRAC |
| Australia | Bit Trade Pty Ltd | Registered digital currency exchange and independent remittance dealer (ACN 163 237 634) | AUSTRAC |
| Australia | Beaufort Fiduciaries Pty Ltd | Australian financial services licence AFSL 545124 (derivatives for wholesale clients) | ASIC |
| Bermuda | Payward Digital Solutions Ltd | Class F digital asset business licence, registration No. 202403268 | Bermuda Monetary Authority |
| Argentina | Payward Trading Ltd. - SSE (Argentine branch) | Virtual asset service provider (PSAV) register No. 155, registered 9 May 2025 | Comisión Nacional de Valores (CNV) |
| United States | Payward Interactive, Inc. | State money transmitter licences, NMLS ID 1843762; a California digital financial asset licence application is pending | US state regulators (NMLS) |
| United States | Payward Financial, Inc. (Kraken Financial) | Money services business, FinCEN No. 31000288010248 (per Kraken); in FinCEN's MSB Registrant Search (searched 2026-10-28); NMLS ID 2429615 | FinCEN |
| United States | Kraken Adviser LLC | SEC-registered investment adviser (advisory services for equities and equity bundles) | SEC |
| Australia | Bit Trade Pty Ltd | Authorised representative (AR No 001312156) of Beaufort Fiduciaries Pty Ltd for Kraken Derivatives only | ASIC |
| United Kingdom | CF Benchmarks Limited | Authorised benchmark administrator, FRN 847100 (group index provider) | Financial Conduct Authority (FCA) |
| United Arab Emirates | Payward FZCO | VASP licence VL/26/10/002 (Dubai) for broker-dealer services and management and investment services, issued 6 October 2026, status active; VARA public register searched 2026-10-28 | Dubai Virtual Asset Regulatory Authority (VARA) |
Status in the United States and the United Kingdom
- Payward Interactive, Inc., trading as Kraken, appears in FinCEN’s Money Services Business registrant list (checked 28 October 2026), with a Cheyenne, Wyoming address and a filing received on 11 August 2026. New York and Maine are not among the states listed for that entity. FinCEN MSB Registrant Search
- In the UK, Payward Ltd (FCA reference 928768) has been registered for cryptoasset activities under the Money Laundering Regulations since 23 November 2021. The FCA Register notes that the Financial Ombudsman Service and the FSCS cannot consider complaints or claims about this firm. FCA Financial Services Register
- On 9 February 2023 the SEC charged Payward Ventures, Inc. and Payward Trading Ltd. over Kraken’s unregistered crypto staking-as-a-service programme. To settle, the two entities agreed to stop offering it and to pay $30 million. SEC, press release 2023-25
- On 28 September 2021 the CFTC issued a settled order against Payward Ventures, Inc. (Kraken) for offering margined retail commodity transactions in digital assets and failing to register as a futures commission merchant; the penalty was $1.25 million. CFTC, release 8433-21
- On 28 November 2022 OFAC announced a settlement with Payward, Inc. (Kraken) over apparent violations of Iran sanctions: $362,158.70 plus a further $100,000 to be invested in sanctions compliance controls. OFAC, recent actions, 28 November 2022
Checked on 28 October 2026 against regulator registers and the text of the law.
Proof of reserves as of 30 June 2026
| Asset | Reserve ratio |
|---|---|
| BTC | 102.9% |
| ETH | 100.5% |
| SOL | 100.6% |
| XRP | 102.3% |
| ADA | 100.3% |
Method: Merkle tree of client balances compared with signed on-chain balances, reviewed by an independent accountant; clients can check their own balance. The Network Firm LLP ↗
Security and audits
- Kraken holds ISO/IEC 27001:2022 certification and has completed a SOC 2 Type 1 examination.
- Funds are held in a mix of cold storage and hot wallets.
- No phone or SMS account recovery.
- Runs a bug bounty programme.
- Sensitive account data is encrypted at rest, and crypto infrastructure is kept in secure cages under 24/7 surveillance.
Fees
| Parameter | Details |
|---|---|
| Spot maker | 0.40% at the base tier (Kraken Pro, spot crypto pairs), lower with volume or assets held |
| Spot taker | 0.80% at the base tier (Kraken Pro, spot crypto pairs), lower with volume or assets held |
| Futures maker | 0.02% at the base tier; for clients in Canada, the US and New Zealand, futures are either not available or do not count toward cross-platform fee tiers |
| Futures taker | 0.05% at the base tier |
| Instant buy / sell | 1% on instant and recurring trades, 1.5% on custom orders, plus a spread |
| Stablecoin and FX pairs | 0.20% maker and taker at the base tier |
| Withdrawals | Fixed or variable per method and currency, shown before confirmation |
| Margin | Opening fee plus a rollover fee every 4 hours, 0.02%–0.04% each for most assets (0.01%–0.02% for BTC, 0.025%–0.05% for USD), on top of trading fees |
| Liquidation | 2% fee on positions that Kraken liquidates automatically |
| Staking commission | 20% of rewards for flexible staking of assets with an unbonding period and for the Rewards programme; other staking commissions vary by asset |
| Small balance conversion | Fixed 3% fee for converting amounts below the minimum order size |
| Stocks and ETFs | No commission (US only); regulatory fees may be passed on |
| xStocks | No trading fee when paying with USDG or USD; the 1% instant fee applies when paying with other assets |
Who can use it
- Verification: Accounts are verified by residency and some features need higher verification levels. Clients in Canada must verify their account; new UK retail accounts wait 24 hours before trading.
- Not available in Afghanistan, Belarus, Crimea, Donetsk and Luhansk, Cuba, DR Congo, Iran, Iraq, Japan, Libya, North Korea, Russia, Sudan, South Sudan and Syria; in the US, not offered to residents of Maine and New York.
History
| Date | Event |
|---|---|
| 28 July 2011 | Jesse Powell co-founds the company that builds the Kraken exchange. |
| 10 September 2013 | The Kraken exchange opens for trading in euros, bitcoin and litecoin. |
| 28 September 2021 | The CFTC orders Payward Ventures, Inc. (Kraken) to pay a $1.25 million penalty over margined retail trading offered to US customers. |
| 28 November 2022 | Payward, Inc. settles with OFAC for $362,158.70 over apparent violations of sanctions against Iran. |
| 28 December 2022 | Kraken announces that it will cease operations in Japan and deregister its Japanese subsidiary Payward Asia from the Financial Services Agency as of 31 January 2023. |
| 9 February 2023 | Two Kraken subsidiaries, Payward Ventures, Inc. and Payward Trading Ltd., settle with the US SEC over the on-chain staking programme and pay $30 million; Kraken agreed to end on-chain staking for US clients at that time. |
| 20 November 2023 | The SEC sues Payward Inc. and Payward Ventures Inc., alleging Kraken operated as an unregistered securities exchange, broker, dealer and clearing agency. |
| 12 December 2024 | Following ASIC action, Australia's Federal Court orders Bit Trade, Kraken's Australian operator, to pay AUD 8 million over a margin product. |
| 3 March 2025 | Kraken announces that SEC staff agreed in principle to dismiss the SEC's lawsuit against it with prejudice, without penalties. |
| 27 March 2025 | The SEC files a joint stipulation with Payward Inc. and Payward Ventures Inc. to dismiss its civil enforcement action against Kraken with prejudice. |
| 25 June 2025 | The Central Bank of Ireland authorises Payward Europe Solutions Limited and Payward Global Solutions Limited as crypto-asset service providers under MiCA. |
| January 2026 | Payward closes the acquisition of Backed, the issuer behind the xStocks tokenised-equity platform. |
Risks and caveats
- Under Kraken's Global Terms, which do not apply in Brazil, Canada or the EEA, crypto accounts and digital assets are not covered by FDIC or SIPC protection or comparable schemes.
- Crypto is held in custody by Kraken, which may use shared blockchain addresses that it controls.
- Enforcement on record: CFTC penalty of $1.25 million (2021), OFAC settlement of $362,158.70 (2022), a $30 million SEC settlement over its staking programme (2023) and an AUD 8 million penalty in Australia (2024).
- Services, assets and products vary by country; derivatives are closed to UK retail and Canadian clients.
- Kraken says its proof of reserves cannot reveal hidden encumbrances or prove that funds were not borrowed to pass the review, and covers only in-scope assets at the snapshot date.
- Assets in the Opt-In Rewards programme can be borrowed by Kraken; once used, title passes to Kraken and the client keeps only a contractual claim.
About the company
- Parent company
- Payward, Inc., incorporated in Delaware, with a legal-notices address in Cheyenne, Wyoming, USA
- Legal entity
- Payward Interactive, Inc. (Cheyenne, Wyoming) for US clients
- Legal entity
- Payward Trading Ltd (British Virgin Islands) for most other countries; separate entities serve the UK, EEA, Canada, Australia and Brazil
- Founded
- Company founded 28 July 2011; exchange opened for trading 10 September 2013
- Founders
- Jesse Powell (co-founder)
- CEO
- Arjun Sethi (one of Kraken's co-CEOs, as of February 2026)
- Legal entity
- Payward Europe Solutions Limited (crypto services) and Payward Ireland Limited (e-money), Dublin, for clients in the EEA
- Legal entity
- Payward Ltd. (London) for UK clients; Bit Trade Pty Limited (Sydney) for Australian clients
- Legal entity
- Payward Canada, Inc. for clients in Canada
- Legal entity
- Payward Brasil Sociedade Prestadora de Serviços de Ativos Virtuais Ltda. (São Paulo, CNPJ 61.533.076/0001-77) for clients in Brazil since 1 October 2025
- Parent company
- Payward also runs NinjaTrader, Breakout, xStocks and CF Benchmarks on the same infrastructure; Kraken remains its main consumer and institutional brand
Official links
- Website: www.kraken.com
- Fees: www.kraken.com/features/fee-schedule
- Proof of reserves: www.kraken.com/proof-of-reserves
- Licences: support.kraken.com/articles/where-is-kraken-licensed-or-regulated
- Terms of use: www.kraken.com/legal/global-terms
- Security: www.kraken.com/features/security
- Blog: blog.kraken.com
Questions and answers
Is Kraken regulated?
Yes. ESMA's MiCA register, the Central Bank of Ireland, FinCEN, FINRA, CySEC, the FCA and Argentina's CNV list Payward group companies; Kraken also reports Canadian, Australian and Bermuda registrations.
Does Kraken publish proof of reserves?
Yes. The review with a snapshot of 30 June 2026, attested by The Network Firm LLP, shows reserve ratios of 102.9% for BTC and 100.5% for ETH; clients can check their own balance in a Merkle tree.
What are Kraken's fees?
On Kraken Pro, spot crypto pairs start at 0.40% maker and 0.80% taker and futures at 0.02% maker and 0.05% taker, falling with volume. Instant buys in the app cost 1%, plus a spread.
Who owns Kraken?
Kraken is run by companies of the Payward group, whose parent is Payward, Inc., a Delaware company with an address in Cheyenne, Wyoming. Jesse Powell co-founded it in 2011; Arjun Sethi is one of Kraken's co-CEOs (as of February 2026).
Is Kraken available in the US?
Yes, in most states, but not to residents of Maine or New York. Some assets and features are restricted for US clients.
Is Kraken available in the EU?
Yes. EEA clients are served by Payward Europe Solutions Limited, authorised under MiCA by the Central Bank of Ireland on 25 June 2025, and Payward Ireland Limited for e-money. Some assets, including USDT, cannot be deposited or traded in the EEA.
Is Kraken regulated in the UK, and are funds protected?
Payward Ltd has been on the FCA register as a cryptoasset firm since 23 November 2021. Crypto services are not covered by the Financial Ombudsman Service or the FSCS, and e-money is safeguarded but not FSCS-protected.
Is Kraken available in Japan?
No. Japan is on Kraken's list of prohibited regions. On 28 December 2022 Kraken announced that it would cease its Japanese operations and deregister from the FSA as of 31 January 2023.
Sources
- Kraken — Where is Kraken licensed or regulated
- Kraken — Fee schedule
- Kraken — Proof of Reserves
- Kraken — Proof of Reserves summary (LedgerLens report linked from Kraken)
- Kraken — Security
- Kraken — Global Terms of Service
- Kraken — Why Kraken
- Kraken — Press
- Kraken Blog — Kraken is Born
- Kraken Blog — Kraken Opens for Trading
- Kraken Blog — 2025 full-year financial highlights
- Kraken Blog — Kraken to end on-chain staking services for U.S. clients
- Kraken Blog — A win for fairness
- ESMA — Interim MiCA register, crypto-asset service providers
- Central Bank of Ireland — Register entry C453020
- CySEC — Cypriot investment firms register
- FinCEN — MSB Registrant Search
- FINRA BrokerCheck — Kraken Securities
- CNV — Register of virtual asset service providers (PSAV)
- CFTC — 8433-21 Penalty against Kraken
- OFAC — Settlement with Payward, Inc. (28 November 2022)
- SEC — 2023-237 SEC charges Kraken
- ASIC — 24-274MR Kraken crypto exchange operator to pay $8 million
- SEC — Press release 2023-25 (Kraken staking settlement)
- SEC — Litigation Release No. 26278 (dismissal)
- Kraken — Disclosures
- FCA Financial Services Register — Payward Ltd (928768)
- FCA Financial Services Register — Payward Services Limited (1010381)
- Kraken — Terms of Service for Brazilian clients
- Kraken Blog — Ending crypto asset exchange services in Japan (28 December 2022)
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