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Is Kraken Safe for UK traders? - 2025 Review

Quick Answer: Is Kraken Safe?

Yes, Kraken is among the safest crypto exchanges in the UK. It’s FCA-registered, and offers strong account-level protection like global settings lock, whitelisting and cold storage. If you’re a UK trader prioritising security and transparency, Kraken is a top-tier choice in 2025.

Kraken Overview

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

Is Kraken Legally Compliant in the UK?

Yes, Kraken implements Compliance measures inline with relevant UK regulatory bodies, and that’s one of the big reasons I chose to trade with them. Unlike some offshore platforms that operate in legal grey areas, Kraken engages with regulators here in the UK. That matters to me because it adds a layer of legal protection and accountability I just won’t trade without.

What does FCA Registration Mean?

Kraken operates in the UK under its subsidiary, Crypto Facilities Ltd., which is officially registered with the Financial Conduct Authority (FCA). I looked this up myself when I first joined — you can search the FCA register and see it right there. This registration means they’re held to unyielding standards when it comes to anti-money laundering, transparency, and operational integrity.

What AML and KYC Measures does Kraken use?

All transactions are monitored and flagged if anything suspicious comes up. From the start, Kraken asked me to complete proper identity checks. They didn’t cut corners with Know-Your-Customer (KYC) verification, and I actually appreciated that. They also have Anti-Money Laundering (AML) controls built in; It’s clear they take compliance seriously.

How Does Kraken Keep My Funds Safe?

From cold storage to account-level tools, Kraken have built one of the most secure trading environments I’ve used — and that’s a big reason I stick with them.

One of the first things that stood out to me was how Kraken handles asset custody. They keep more than 95% of user funds in offline cold storage, spread across multiple secure locations. That means hackers can’t just break in through the internet and drain wallets. The majority of funds are physically disconnected from any network. And the private keys? Those are stored in facilities with multiple layers of access control. It’s serious, enterprise-grade security.

What about Platform-Level Account Security?

On the user side, Kraken gives me the tools I need to stay protected. I’ve got two-factor authentication (2FA) set up with an app, and I use the Global Settings Lock to freeze any account changes unless I approve them. There’s also withdrawal whitelisting, so even if someone did get in, they couldn’t send funds anywhere unfamiliar. Plus, I can track every login session in real time.

Feature	Description
2FA	Secure login with authentication apps
Global Settings Lock	Prevents unauthorised account changes
Withdrawal Whitelist	Only allows crypto to leave your account via approved wallets
Session Monitoring	Track and manage active sessions
Bug Bounty Program	Rewards researchers for finding and disclosing vulnerabilities

To top it off, Kraken runs a public bug bounty program, so ethical hackers can test for vulnerabilities and get rewarded when they find them.

Kraken’s Bug Bounty approach is a cornerstone of its proactive security strategy, inviting ethical hackers to identify and responsibly disclose vulnerabilities within its systems. Participants are expected to act in good faith, avoid unnecessary exploitation, and report findings promptly with detailed proof-of-concept documentation.

Rewards are issued in Bitcoin, with the amount determined by the severity of the vulnerability, and are paid to verified Kraken accounts. This collaborative approach not only enhances Kraken’s platform security but also contributes to the broader safety of the crypto ecosystem.

How Does Kraken Compare to Other UK Crypto Platforms for Safety?

I’ve tested other cryptocurrency platforms, and while they all have solid features, Kraken feels more comprehensive in its protection of users.

It’s not just about cold storage or having 2FA; it’s about the whole ecosystem. Kraken combines compliance programs, insurance coverage, and a transparent approach to platform security. Some exchanges talk a good game, but Kraken actually backs it up with action.

Platform	FCA Registered	Cold Storage	Insurance	Bug Bounty	Hack History
Kraken	✅	95%+	✅	✅	❌ Never
Binance UK	✅	90%+	Partial	✅	❌ Partial
Coinbase	✅	98%+	✅	✅	✅ (2021 + 2025 breach reported)

What do UK Users Say About Kraken?

When I talk to other traders or scroll through review sites, Kraken almost always gets high praise for its security measures. People appreciate the platform’s stability, the thoroughness of its login protections, and the clarity of their fee structure. It’s the kind of platform that attracts traders who prioritise long-term safety over flashy tokens or low fees.

Can I Trust Kraken With Long-Term Crypto Storage?

Personally, I trust Kraken for trading and short-to-mid-term storage, but when it comes to long-term holding, I still prefer using a hardware wallet. Kraken’s security is excellent, but like any exchange, it’s not immune to risks like government intervention or rare edge-case failures.

For everyday trading, or even holding moderate amounts of crypto over a few months, I feel completely comfortable using Kraken. But when I’m parking large amounts of Bitcoin or Ethereum for the long haul, I transfer it to a cold wallet that I control.

What about Insurance Coverage?

Kraken has insurance against certain types of exchange-level breaches. So, if something were to happen on their end — say, a systemic breach that exploits the platform directly — there is a safety net in place.

However, it’s essential to note that this insurance doesn’t cover everything. Kraken won’t be able to reimburse me for user-side errors.

What Remaining Risks Do I Need to Be Aware Of?

Even on a secure platform like Kraken, there are still risks I’ve learned to watch out for:

Phishing scams – Always double-check URLs and never click suspicious emails.
Social engineering – If someone tries to impersonate support, it’s a red flag.
Weak passwords – I use a password manager to keep mine long and unique.
SIM-swapping – I’ve locked my mobile account to prevent hijacking via my phone number.

Kraken provides users with tools that help to stay safe, it’s up to you to use them.

Is Kraken’s App and Web Platform Secure to Use?

Yes, I’ve found that whether I’m trading on my phone or checking charts on my laptop, I can feel confident knowing Kraken has layered protections built in.

Mobile App Security

I use the Kraken mobile app almost daily and appreciate its strong security features especially biometric login, which provides quick access without relying on potentially vulnerable SMS-based methods. The app also includes device management tools, so if I ever lose my phone, I can easily revoke its access remotely. Additionally, Kraken encrypts all sensitive data, offering peace of mind that my information is protected even behind the scenes.

Browser Security & Session Controls

On desktop, I rely heavily on session control features. I get real-time notifications if there’s any login activity, and I can see exactly where my account is active. If something doesn’t look right, I can shut it down instantly. I’ve also enabled the Global Settings Lock — so even if someone tried to change key details, they’d need to pass extra verification.

Kraken also encrypts every login and transaction request, which is nice to have when I’m using public Wi-Fi or switching between networks.

What About Customer Support for Security Issues?

I’ve never had a major issue, but I did once lock myself out after resetting my 2FA. Kraken’s support team responded within 30 minutes through secure chat — way faster than I expected. They were efficient, clear, and took the right security steps before restoring access. That kind of fast, secure support matters when your account access is at risk.

Update to “that kind of fast, secure support matters when your account access is at risk” or similar

What Do Security Experts Think About Kraken?

I’ve spoken with several industry professionals over the years, and Kraken almost always comes up as one of the most trusted names in crypto security. One security analyst I follow put it perfectly:

“Kraken is still one of the gold standards when it comes to online crypto security. The fact that it’s never been hacked speaks volumes. For UK users, Kraken’s mix of regulation and tech makes it one of the safest exchanges available.”
— UK-based Digital Currency Analyst and Reviewer, 2025

That expert opinion lines up precisely with my own experience, and it’s why I continue to trade on Kraken with confidence.

Final Verdict

If you’re in the UK and take crypto safety seriously, Kraken is absolutely one of the best options out there. I’ve been using it for years, and I’ve never had a moment where I felt exposed or unsure about the safety of my funds.

Cybersecurity for digital currency is not just about avoiding hacks; it is about using a platform that takes your safety as seriously as you do. Kraken gives me control over my security settings, provides real-time alerts, and gives me the peace of mind knowing that my funds are well-protected.

For trading,or just holding coins securely for a while, I’d recommend Kraken.

Buy and Sell Crypto Securely

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

FAQs

Is Kraken safe for long-term crypto storage?

Kraken is secure for short-to-mid-term storage, but for long-term holdings, use a hardware wallet.

What security features does Kraken offer?

Kraken provides two-factor authentication (2FA), global settings lock, withdrawal whitelisting, session monitoring, and runs a public bug bounty program.

How does Kraken compare to other UK crypto exchanges?

Kraken stands out for its clean hack history, robust compliance programs, insurance cover, and strong user protections, often outperforming other platforms.

Update to “robust compliance programs”

Update to “other platforms”

Is the Kraken app safe to use?

Yes, Kraken’s mobile app includes biometric login, device management, and encrypted data protection. It’s one of the most secure crypto apps I’ve used.

Does Kraken offer insurance for crypto assets?

Kraken maintains insurance for exchange-level breaches but not for user-side issues like phishing, lost passwords, or SIM-swapping attacks.

References

Kraken Support – Security Features
FCA – Financial Services Register: Crypto Facilities Ltd.
Kraken Blog – Commitment to Security
Reddit – r/UKCrypto: User Experiences with Kraken
Ledger Academy – Cold Storage vs. Exchange Storage
Kraken Bug Bounty Program – HackerOne