Is Kraken safe?

The short answer.

Safety

4/5 Regular Proof of Reserves checks by an independent accounting firm.

Regulation

3/5 AUSTRAC and AFCA member, but no AFSL and an A$8M penalty in 2024.

Worth knowing

• The 2024 Federal Court penalty of A$8 million against Bit Trade, its Australian operator.
• Instant buys cost 1%, and card purchases add 3.75% + 25c on top.
• Kraken holds no Australian financial services licence for its exchange services, according to its disclosures.
• Kraken Pro's tier tables take some reading to work out your actual rate.

Ratings are Nodora’s own, from published sources, and are not a guarantee. A good rating does not protect you from scams, lost passwords or a falling market.

The 2024 court penalty

In August 2024, the Federal Court found that Bit Trade Pty Ltd, Kraken's Australian operator, had failed to meet design and distribution obligations for its margin extension product, after action by ASIC. ASIC said more than 1,100 Australians were issued the product, which it treated as a credit facility.

In December 2024 the court ordered Bit Trade to pay a A$8 million penalty. The case concerned a margin product, not ordinary spot buying, but it's relevant context for how the business handled Australian compliance.

Regulation, reserves and complaints

Kraken's disclosures say Bit Trade is registered with AUSTRAC as a digital currency exchange and holds no Australian financial services licence for its exchange services. It is a member of AFCA, so you can take an unresolved complaint to an external dispute body.

Kraken publishes Proof of Reserves checks carried out by an independent accounting firm. Kraken itself notes their limits: they compare reserves with client balances at a point in time and can't prove everything about key control. They're a helpful signal, not a guarantee.

How to protect yourself on any exchange.

1. Turn on two-factor authentication

   Use an authenticator app instead of SMS where the exchange offers it.

2. Check the web address

   Fake login pages are the most common way accounts are emptied. Type the address yourself or use a bookmark. How to spot crypto scams ↗

3. Do not store everything on an exchange

   Coins you plan to hold for years are safer in a wallet you control. Wallet security guide ↗

4. Test withdrawals early

   Send a small amount out before you need to move a large one, so you know the limits, fees and delays.

How Kraken compares on safety.

Our safety and regulation ratings for all 13 exchanges, highest combined score first.

1. 1CoinbaseSafety 4 · Regulation 4.5 · Details4.25
2. 2CoinSpotSafety 4 · Regulation 4.5 · Details4.25
3. 3Crypto.comSafety 4 · Regulation 4 · Details4
4. 4CoinJarSafety 4 · Regulation 3.5 · Details3.75
5. 5Independent ReserveSafety 4 · Regulation 3.5 · Details3.75
6. 6SwyftxSafety 4 · Regulation 3.5 · Details3.75
7. 7BTC MarketsSafety 3.5 · Regulation 3.5 · Details3.5
8. 8KrakenSafety 4 · Regulation 3 · Full review3.5
9. 9OKXSafety 3.5 · Regulation 2.5 · Details3
10. 10Digital SurgeSafety 2 · Regulation 3.5 · Details2.75
11. 11BinanceSafety 3 · Regulation 2 · Details2.5
12. 12KuCoinSafety 3 · Regulation 1.5 · Details2.25
13. 13BybitSafety 1.5 · Regulation 2.5 · Details2

Common questions.

Is Kraken legal and regulated in Australia?

Kraken operates in Australia through Bit Trade Pty Ltd, which its disclosures say is registered with AUSTRAC as a digital currency exchange. It holds no Australian financial services licence for exchange services, but it is an AFCA member.

Why was Kraken fined in Australia?

After ASIC took action, the Federal Court found in 2024 that Bit Trade breached design and distribution obligations for its margin extension product, and ordered a A$8 million penalty.

Next steps.

Visit Kraken ↗Affiliate link