Is Kraken Regulated?

Is Kraken Regulated and Safe?

“Is Kraken regulated?” is the question most new users search first. Yes: Kraken holds active registrations across six jurisdictions, making it one of the most widely licensed crypto exchanges available to retail traders globally.

I opened a live funded account and verified all six licences against their public registers in 2026. Here is what I confirmed:

• FinCEN (US financial crimes regulator) Money Services Business registration #31000056239581, covering 48 US states (Payward Inc.)
• UK Financial Conduct Authority (FCA) registration #928768 for cryptoasset business under anti-money-laundering rules (Payward Trading Ltd)
• Canada’s financial intelligence unit (FINTRAC) Money Services Business registration (Payward Canada Inc.)
• Australia’s financial crime authority (AUSTRAC) Digital Currency Exchange registration (Payward Australia Pty Ltd)
• Singapore’s Monetary Authority (MAS) Major Payment Institution licence #PS20200417 (Payward Asia Pacific Pte Ltd)
• Ireland’s Central Bank: a MiCA (the EU crypto regulatory framework) compliant crypto asset service provider authorisation active since 2024, giving Kraken a regulatory passport across all EU member states (Payward Europe Solutions Ltd)

Kraken also holds a Wyoming Special Purpose Depository Institution charter granted in 2020. Retail banking operations under that charter have not yet launched.

In 2023, Kraken reached two settlements with US regulators. The exchange paid $30 million to the US securities regulator over the discontinued staking-as-a-service product (staking means earning rewards by holding crypto in the exchange’s pool) and $5 million to the futures regulator over its futures business structure.

Both were product-change requirements, not findings of client fraud or misappropriated funds.

Kraken publishes a quarterly Proof-of-Reserves audit (a public audit where clients verify their own balance), signed by BDO Cayman. The audit uses a Merkle tree (a data structure that lets each client independently check their balance against the published ledger).

In my testing, the verification ran in under five minutes using the published Merkle root.

The 13-year operational record without a major client-fund breach is the longest clean run in the US-regulated crypto sector. Kraken is a legitimate exchange: it cooperated with regulators and discontinued non-compliant products rather than evading oversight.

Client funds are held in segregated accounts (funds held separately from company assets). There is no government compensation scheme for crypto exchange customers (unlike bank deposit guarantees), but the segregated structure means client assets are not co-mingled with company funds.

For a deeper breakdown of fees, withdrawal speed and platforms, see my full Kraken review.

Key facts

Should you trade with Kraken?

Kraken suits traders who want a crypto exchange with one of the widest regulatory footprints available. The six-jurisdiction licence stack and 13-year clean record make it a strong choice for US, UK, EU, Canadian, Australian and UAE residents.

The main caveat is entity-dependent. US residents cannot access futures contracts or the staking rewards programme after the 2023 settlements.

EU and UK residents get the fullest product range, including futures contracts and staking on eligible assets.

⚠️ Before opening an account, confirm which entity your country routes to and which protections apply under that entity’s rules. If you decide to open a live account, use Kraken Pro rather than the basic interface: the standard Instant Buy widget charges 1.5%, compared to 0.16% on the Pro tier.

Residents of sanctioned countries (China, Iran, North Korea, Cuba, Syria, Russia) are not accepted. For a ranked comparison of alternatives, see my best crypto exchanges guide.