Key Data

• Trading Name: Kraken 
• Legal Entity: Payward, Inc., Payward Ventures, Inc., Payward Ltd, and others
  
• Activities: Crypto exchange
• Location: United States
  
• Regulations: regulated/registered in various jurisdictions
  
• Key People: David Ripley, Jesse Powell, Gilles BianRosa, Marcus Hughes, Marco Santori, Brian Gahan
• News: Kraken
• Latest update: Sept 25, 2024

Background Information

Kraken is one of the leading crypto exchanges with regulatory authorizations in various regulatory regimes. Kraken is a crypto exchange founded in 2011 in San Francisco with offices around the world.

In September 2024, Kraken announced the completion of the acquisition of the Dutch crypto exchange bcm, citing it as preparation for MiCA regulation.

Offering

Kraken is a cryptocurrency exchange platform that caters to both retail and institutional clients. Kraken allows users to buy, sell, and margin trade Bitcoin (BTC) and Ethereum (ETH) in exchange with EUR, USD, CAD, GBP, and JPY.

Kraken Pro is an active trading platform that works through your web browser or smartphone. While the interface may be intimidating to crypto and trading newbies, it could be worth learning. It includes more detailed asset information, including active charts and a view of open orders.

Customer Service

Kraken support is available 24 hours a day via live chat, phone, and email. We had a minor issue changing an account setting (mostly due to user error) and sent in a support ticket. Kraken staff responded and resolved the problem in about 20 minutes.

Fees

Kraken charges a variable fee rate that ranges from 0% to 0.26% depending on the trading pair and the user’s trading volume

People

• David Ripley: Current CEO of Kraken. He succeeded Jesse Powell as CEO in September 2022.
• Jesse Powell: Co-founder and former CEO of Kraken. He stepped down as CEO in September 2022 and became chairman of Kraken’s board of directors.
• Gilles BianRosa: Chief Operating Officer and Chief Product Officer (COO/CPO). He joined Kraken in 2024 and reports directly to CEO David Ripley.
• Marcus Hughes: Global Head of Regulatory Strategy. He joined Kraken in 2024 and reports to Chief Legal Officer Marco Santori.
• Marco Santori: Chief Legal Officer.
• Brian Gahan: Managing Director for Europe.

Customer review

Kraken has received a “bad” trust level from its customers on Trustpilot. Some users have praised Kraken for its security measures, low trading fees, and wide range of available cryptocurrencies. Others have criticized Kraken for its customer support.

Trustpilot: 1.4 Stars with 2300+ Reviews

Compliance Situation

Kraken has obtained several regulatory authorizations and registrations across different jurisdictions:

1. E-Money Institution (EMI) authorization from the Central Bank of Ireland
2. Virtual Asset Service Provider (VASP) registration in Spain
3. VASP registration in Ireland
4. VASP registration in Italy
5. Special Purpose Depository Institution (SPDI) charter in Wyoming, USA (first cryptocurrency exchange to hold such a charter in the United States)
6. Registrations and licenses in the United States, United Kingdom, Canada, Australia, and Abu Dhabi in the UAE
7. Money transmitter licenses in various U.S. states (acquired through the purchase of TradeStation Crypto in April 2024)

It’s worth noting that Kraken has faced regulatory challenges in some jurisdictions:

1. The company exited the New York market in 2015 due to the introduction of the BitLicense regulatory framework.
2. Kraken shut down its operations in Japan and the United Arab Emirates in February 2023, less than a year after securing a license in the UAE region.
3. The company has been involved in various regulatory investigations and settlements with U.S. authorities, including the SEC, OFAC, and CFTC.

Kraken continues to expand its regulatory footprint, particularly in Europe, as part of its growth strategy.

Rating Conclusion

Kraken has a wide range of registrations and authorizations to conduct its business in a legally compliant manner. Although Kraken has a pending lawsuit from the SEC, we have put the company on our Green Compliance list. Because of the exceptionally poor rating on Trustpilot with a “bad” trust level, we have also put Kraken on our Orange Risk list.