Kraken is one of the most established names in the cryptocurrency exchange landscape. Founded in 2011, it has built a reputation for security, compliance, and reliability—especially among users in regulated markets. But how does it truly stand up in terms of global rankings, user accessibility (including in regions like Taiwan), fee structure, and overall platform performance? This comprehensive review dives into Kraken’s core offerings, security protocols, market position, and user experience to help you determine whether it’s the right fit for your crypto journey.
What Is Kraken?
Kraken is a U.S.-based centralized cryptocurrency exchange launched in July 2011 in San Francisco by Jesse Powell. As one of the oldest exchanges still operating, Kraken has weathered multiple market cycles and security crises that have taken down competitors. It provides services including spot trading, futures and margin trading, over-the-counter (OTC) desks for institutional clients, staking-as-a-service, and NFT marketplace access.
The platform supports over 180 cryptocurrencies and serves more than 7 million users across 190+ countries. Notably, Kraken was among the first crypto exchanges to be integrated into Bloomberg Terminal—a trusted financial data platform—affirming its legitimacy within traditional finance circles.
👉 Discover how top-tier exchanges maintain security and compliance standards in volatile markets.
Is Kraken Trustworthy? Company Background & Security Overview
A common concern for new investors is whether an exchange is legitimate or potentially a scam. Kraken is not a scam—it is a regulated, transparent, and highly secure exchange.
Founding and Historical Milestones
Jesse Powell founded Kraken after visiting Mt. Gox during its early security breaches. Recognizing critical flaws in user fund protection, he aimed to build a more secure and trustworthy alternative. His vision paid off:
- In 2014, Kraken became the first crypto exchange listed on Bloomberg Terminal.
- Following Mt. Gox’s bankruptcy, Kraken was appointed as a distribution agent for returning user assets, boosting its credibility.
- In 2020, Kraken Financial received a special purpose depository institution (SPDI) charter in Wyoming, becoming the first U.S. crypto company to operate a bank offering custody and trust services.
These milestones underscore Kraken’s long-term commitment to regulatory compliance and financial integrity.
Security Features and Proof of Reserves
Security is where Kraken truly shines:
- 95% of customer funds are stored in offline cold wallets.
- Mandatory two-factor authentication (2FA) via Google Authenticator or hardware keys.
- Full SSL encryption, multi-signature transactions, and strict KYC procedures.
- Regular Proof of Reserves audits conducted by Armanino LLP—an independent accounting firm—ensuring 1:1 asset backing.
As of early 2022, these audits verified over $19 billion in BTC and ETH reserves. No major hacks or fund losses have ever been reported.
Global Ranking, Trading Volume & Market Share
Kraken consistently ranks among the top five global exchanges by reputation and compliance strength, though it trails behind Binance and Coinbase in trading volume.
Exchange Rankings & Performance Metrics
According to CoinMarketCap:
- Ranked #3 globally in overall exchange rating (8.5/10).
- Daily spot trading volume averages around $690 million.
While impressive, this pales in comparison to Binance’s multi-billion-dollar daily volumes. However, Kraken maintains strong liquidity for major pairs like BTC/USD, ETH/USD, and stablecoin trades.
Market Share Insights
Data from CryptoCompare indicates Kraken holds approximately 5% of global trading volume, placing it behind Coinbase but ahead of many regional players. Its market share has faced pressure due to higher fees and fewer altcoins compared to rivals like OKX or Bybit.
👉 Compare real-time trading volumes and fee structures across leading platforms.
Supported Countries & Restrictions
Kraken operates in over 190 countries, including:
- United States
- United Kingdom
- Canada
- Germany
- France
- Australia
- Singapore
- South Korea
- Hong Kong
- Taiwan
However, some jurisdictions are restricted:
- Japan (service discontinued in January 2023)
- Cuba
- Democratic Republic of the Congo
- Syria
Taiwanese users can register and deposit funds using international bank transfers or crypto wallets. Withdrawals back to local banks may require intermediary steps through other exchanges.
Platform Features & User Experience
Kraken offers a tiered ecosystem designed for both beginners and professionals.
1. Kraken Pro: Advanced Trading Interface
Kraken Pro delivers low-latency order execution with advanced charting tools, API access, and deep liquidity. It supports:
- Spot trading with maker/taker fee discounts at high volumes.
- Futures contracts with up to 50x leverage.
- Margin trading (available in eligible regions).
2. Staking-as-a-Service
Kraken allows users to earn yields by staking over 20 cryptocurrencies, with annual percentage yields (APY) reaching up to 20% on select assets.
Note: In February 2023, Kraken suspended its staking program for U.S. customers following SEC enforcement actions. Non-U.S. users remain unaffected.
3. NFT Marketplace
Users can buy, sell, and explore popular NFT collections such as Bored Ape Yacht Club (BAYC), Azuki, Moonbirds, and Doodles—all within the Kraken ecosystem.
Community Feedback (Including PTT Reviews)
On forums like PTT (a popular Taiwanese discussion board), Kraken receives mixed but generally positive feedback:
- Praised for reliability, security, and U.S. regulatory compliance.
- Criticized for higher fees, limited altcoin selection, and less aggressive leverage options compared to competitors.
One user noted: “After Coinbase, Kraken is probably the only other exchange I’d fully trust with large holdings.”
Fees Structure: Spot, Futures & Withdrawals
Kraken uses a tiered fee model based on 30-day trading volume.
Spot Trading Fees
| 30-Day Volume (USD) | Maker Fee | Taker Fee |
|---|---|---|
| $0 – $50,000 | 0.16% | 0.26% |
| $50K – $100K | 0.14% | 0.24% |
| $100K – $250K | 0.12% | 0.22% |
| $250K – $500K | 0.10% | 0.20% |
| $500K – $1M | 0.08% | 0.18% |
Fees decrease further for institutional-tier traders.
Futures & Derivatives Fees
| Monthly Volume (USD) | Maker | Taker |
|---|---|---|
| $0 – $100K | 0.02% | 0.05% |
| $100K – $1M | 0.015% | 0.04% |
| $1M – $5M | 0.0125% | 0.03% |
Leverage up to 50x is available on select pairs.
Additional Costs
- Fiat deposit fee: 0.2%
- Fiat withdrawal: $24–$140 depending on method
- USDT withdrawal (TRC20): 2.5 USDT
These costs are relatively high compared to platforms offering free or near-zero withdrawal fees.
Frequently Asked Questions (FAQ)
Q: Can users from Taiwan use Kraken?
A: Yes, Kraken supports users from Taiwan. You can register, verify your identity (KYC), deposit funds via bank transfer or crypto wallet, and trade freely.
Q: Is Kraken a decentralized exchange (DEX)?
A: No. Kraken is a centralized exchange (CEX), meaning it manages user assets and facilitates order matching internally—similar to Coinbase or OKX.
Q: Has Kraken ever been hacked?
A: No. Since its founding in 2011, Kraken has never suffered a successful hack resulting in customer fund loss.
Q: Why are Kraken’s fees considered high?
A: Compared to ultra-low-fee platforms like Binance or OKX, Kraken’s base taker fees start higher (0.26%). However, active traders benefit from volume-based discounts.
Q: Does Kraken support Chinese language?
A: Partially. While the website offers some Chinese interface options, many sections—including support articles and legal terms—remain in English only.
Q: What makes Kraken different from other exchanges?
A: Its focus on regulatory compliance, proof-of-reserves transparency, U.S. banking integration, and long-standing operational history set it apart as a trusted custodian for conservative investors.
Final Verdict: Pros & Cons Summary
✅ Advantages of Kraken
- Industry-leading security practices and proof-of-reserves transparency
- Regulated U.S. entity with SPDI banking license
- Supports fiat deposits/withdrawals in USD, EUR, CAD, GBP
- Strong reputation and long operational track record
- Offers staking, futures, OTC desk, and NFT marketplace
❌ Disadvantages of Kraken
- Relatively high trading and withdrawal fees
- Limited altcoin selection compared to Binance or OKX
- Incomplete Chinese language support, posing challenges for non-English speakers
- Not ideal for beginners due to complex interface and professional focus
👉 Explore exchanges with lower fees and broader language support for global traders.
Conclusion
Kraken excels as a secure, compliant gateway for users prioritizing asset safety over aggressive trading features or low costs. While it may not offer the widest range of coins or cheapest fees, its unwavering commitment to transparency and regulation makes it a top choice for risk-conscious investors—especially those in North America and Europe.
For traders seeking lower fees, more altcoins, or better multilingual support (including full Chinese interfaces), alternatives like OKX may provide a more balanced experience without sacrificing security.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before investing.