Is Kraken FCA Regulated?
Yes. Kraken operates in the UK through Payward Ltd (FRN 928768), which is on the FCA cryptoasset register, and Payward Services Ltd (FRN 1010381), which has been an FCA-authorised Electronic Money Institution (EMI) since March 2025. This dual registration means Kraken has met the FCA's requirements for both cryptoasset activities and electronic money services, giving it a broader regulatory footprint than exchanges with only cryptoasset registration.
What Kraken's FCA Registration Covers
- AML/KYC compliance under the Money Laundering Regulations 2017
- Legal right to promote cryptoasset services to UK consumers
- Electronic money institution authorisation for handling fiat currency
- Ongoing FCA supervisory oversight for both crypto and e-money activities
- FSCS protection: your crypto holdings are not covered by the Financial Services Compensation Scheme
- Investment advice authorisation: Kraken is not authorised to provide regulated investment advice
- Protection against exchange insolvency: you would be an unsecured creditor if Kraken failed
Kraken's UK Regulatory Entity
- Payward Ltd
- 08593670
- Cryptoasset register + EMI (Payward Services Ltd, FRN 1010381)
Payward Ltd is Kraken's UK-registered entity, responsible for the exchange's operations and regulatory compliance in the United Kingdom. The company is registered at Companies House (company number 08593670) and is on the FCA cryptoasset register under FRN 928768. Its sister company Payward Services Ltd holds the Electronic Money Institution authorisation (FRN 1010381), which allows Kraken to issue electronic money and provide payment services, which underpins Kraken's ability to handle GBP deposits and withdrawals via Faster Payments. You can verify this registration directly on the FCA register.
Verify on FCA RegisterIs Your Crypto Safe on Kraken?
Kraken has one of the strongest security track records among cryptocurrency exchanges. No customer funds have been lost to a breach of its platform since launch in 2011 (an isolated deposit-system bug disclosed in June 2024 was patched with no client assets affected). Kraken holds ISO 27001 certification for information security management and has completed SOC 2 Type 1 examination. The exchange also publishes regular Proof of Reserves audits, allowing users to cryptographically verify that Kraken holds sufficient assets to cover all client balances. Despite these strong security credentials, your crypto on Kraken is not protected by the FSCS. If Kraken were to become insolvent, you would be an unsecured creditor in the administration process.
Why Kraken's Dual Registration Matters
Kraken's dual FCA registration, as both a cryptoasset business and an Electronic Money Institution, is worth understanding. The cryptoasset registration means Kraken has passed the FCA's anti-money-laundering assessment for crypto activities. The EMI registration goes further: it authorises Kraken to issue electronic money and provide payment services. In practical terms, this means Kraken's ability to process GBP deposits and withdrawals via Faster Payments is directly regulated by the FCA, not just its crypto activities. Only a handful of crypto exchanges in the UK hold both registrations. This dual status does not provide FSCS protection for your crypto, but it does mean the FCA has more oversight over Kraken's operations than exchanges with only a cryptoasset registration.
How Kraken Compares to Other FCA-Regulated Exchanges
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See the full list of FCA-regulated crypto exchanges in the UK.