Kraken review: Dual-licensed ASIC + AUSTRAC crypto exchange
Kraken is the only major crypto exchange holding both ASIC AFSL and AUSTRAC DCE registration in Australia, giving it the strongest dual-regulator profile in the AU crypto market. US-origin (founded 2011, San Francisco), 220+ coins available to AU residents. The Pro interface (Kraken Pro, formerly Kraken Trade) brings spot fees to 0.25% maker / 0.40% taker entry tier, with VIP tiers below 0.10%. Strong security record (one major incident in 2017, fully remediated, clean since). Strong futures and margin offerings globally though AU access to leveraged products is restricted under ASIC retail caps. Best fit for security-conscious investors who value the dual-regulator pedigree; not the cheapest for active spot trading. Rating: 4.3 out of 5.
Key facts at a glance
The headline parameters Australian residents should know.
Dual-licensed: ASIC + AUSTRAC
This is Kraken's strongest differentiator in the Australian market.
Most AU crypto exchanges hold AUSTRAC DCE registration only. This covers:
- AML / CTF (anti-money-laundering, counter-terrorism financing) compliance
- Customer identity verification (KYC)
- Suspicious matter reporting
- Transaction record keeping
It does NOT cover financial-services conduct standards, retail-investor protection, or AFCA dispute resolution.
Kraken voluntarily holds an ASIC AFSL (Australian Financial Services Licence, AFSL 547223) in addition to AUSTRAC DCE registration. The AFSL covers:
- Retail-investor protection standards
- Conduct of business obligations
- Internal dispute resolution requirements
- AFCA (Australian Financial Complaints Authority) external dispute resolution membership
- ASIC enforcement standards on conduct
The combined effect: if an AU resident has a dispute with Kraken that cannot be resolved internally, the ASIC AFSL means AFCA jurisdiction applies. Without an AFSL (which is the case for most other crypto exchanges), AFCA typically does not have jurisdiction over crypto-trading disputes - users have to pursue alternative paths (court, ombudsman, etc) which are slower and more expensive.
Other AU-accessible exchanges' regulatory status:
- CoinSpot: AUSTRAC DCE only (since 2013)
- Binance Australia: AUSTRAC DCE (since 2022)
- Independent Reserve: AUSTRAC DCE (since 2014)
- Digital Surge: AUSTRAC DCE
- Cointree: AUSTRAC DCE
- Coinbase Australia: AUSTRAC DCE (since 2018)
- Crypto.com: AUSTRAC DCE
- Kraken: AUSTRAC DCE + ASIC AFSL 547223 ← unique
For investors who weight Australian regulatory protection as a primary signal (e.g. SMSF trustees with fiduciary obligations, conservative HNW investors), Kraken's dual-licensing is genuinely unique.
The parent Payward Inc is US-headquartered (San Francisco), founded July 2011. 13+ year operating history is among the longest in retail crypto. Holds additional regulatory registrations in the US (FinCEN MSB, various state licences), UK (FCA EMI registration), and several EU jurisdictions.
Fees: Kraken vs Kraken Pro
Kraken offers two interfaces with materially different fee structures.
Kraken (Buy/Sell consumer interface):
- Spread-based pricing
- Effective cost: approximately 0.9% to 1.5% per trade
- Smaller trades attract slightly higher effective spreads
- Card-funded purchases attract additional 3.75% card processor fee
Kraken Pro:
- Maker fee: 0.25% entry tier (0-50k USD 30-day volume)
- Taker fee: 0.40% entry tier
- VIP tiers reduce based on 30-day volume
Kraken Pro VIP tiers (representative):
- $50k+ volume: 0.20% maker / 0.35% taker
- $100k+: 0.16% / 0.30%
- $500k+: 0.10% / 0.25%
- $1m+: 0.04% / 0.18%
- $10m+: 0.00% / 0.10%
Cost comparison vs other AU-accessible exchanges:
- Binance Australia: 0.10% / 0.10% (cost leader for AUSTRAC AU)
- CoinSpot Markets: 0.10% / 0.10%
- Bybit: 0.10% / 0.10% (offshore)
- Coinbase Advanced Trade: 0.40% / 0.60%
- Kraken Pro entry: 0.25% / 0.40%
- Crypto.com Exchange entry: 0.25% / 0.50%
- Independent Reserve: 0.50% / 0.50%
For active traders, Kraken Pro is mid-pack. Materially cheaper than Coinbase Advanced Trade; materially more expensive than Binance / CoinSpot Markets. The dual-regulator pedigree premium over Binance Australia is the question for buyers.
For very high-volume traders who reach $1m+ 30-day volume, Kraken Pro VIP becomes competitive (0.04%/0.18% vs Binance 0.10%/0.10%). For typical retail volume, Binance and CoinSpot Markets are cheaper.
Products: spot, staking, futures (restricted in AU)
Spot trading: 220+ coins available to AU residents via Kraken or Kraken Pro interfaces. Major coins (BTC, ETH, SOL, XRP, ADA, DOT, MATIC, etc) all available. Long-tail and meme tokens variable - Kraken historically takes a more conservative listing approach than Binance or KuCoin.
Staking: validator-based staking on supported proof-of-stake coins. Reliable yield delivery; Kraken passes through validator rewards minus platform commission. Major staking coins supported (ETH 2.0, SOL, ADA, DOT, ATOM, etc).
Futures and margin (restricted for AU retail): Kraken Futures globally offers perpetual and dated futures with up to 50x leverage. AU retail clients are subject to ASIC retail leverage caps (2:1 maximum on crypto CFDs), which materially limits Kraken's derivatives offering for AU users. Active derivatives traders typically use offshore exchanges (Bybit, Binance Global) for unrestricted leverage access.
Earn: rotating savings products with yields varying by coin. Counterparty risk applies (you're lending crypto to Kraken).
NFTs: Kraken NFT marketplace exists but is less liquid than dedicated NFT venues.
Deposits, withdrawals, and AUD on-ramp
Strong AUD on-ramp via Kraken's AU-supported payment processor relationships:
- PayID / Osko: instant during banking hours, no fee
- BPAY: 1-2 business days, no fee
- Bank transfer: 1-3 business days, no fee
- Card funding: instant but with 3.75% card processor fee (notable - higher than most competitors)
PayID and Osko support is the modern AU rail standard. The card-funding fee is higher than most competitors and should be avoided unless time-sensitive.
Withdrawals follow standard processing rules: requests typically same-day approval; funds reach AU bank accounts within 1-3 business days. No AUD withdrawal fees on supported methods.
Crypto deposits: free, fast, multi-network support.
Crypto withdrawals: standard fees per coin and network. Kraken's withdrawal fees are competitive within industry norms.
Security and the 2017 incident
Kraken's security architecture includes:
- Cold storage for the majority of customer funds (industry standard)
- Multi-signature controls on hot wallet operations
- Hardware Security Module (HSM) for key management
- 2FA mandatory; supports authenticator apps and YubiKey hardware tokens
- Master Key for additional account-level security
- Withdrawal address whitelisting
- Anti-phishing code feature
Proof of Reserves: Kraken publishes Merkle-tree-based PoR audits regularly. Users can independently verify their own balance is included in published reserves. This transparency mechanism is best-in-class for crypto exchanges.
Historical incident (June 2017):
Kraken experienced a security issue in June 2017 affecting a subset of customer accounts. The incident was caused by a vulnerability in a specific subsystem and was promptly identified, remediated, and disclosed. All affected customers were fully reimbursed by Kraken from corporate funds. Following the incident, Kraken redesigned the relevant security framework with mandatory PoR audits, additional internal controls, and an external security audit programme that has run annually since.
The 8+ years since (2017-2026): clean record. No major security incidents affecting customer funds.
Comparison to peer exchanges:
- Coinbase: 14-year clean record (since 2012), no major incident, NASDAQ-listed transparency
- Kraken: 13+ year history with one 2017 incident, fully remediated, clean since
- Binance: various historical incidents (2018-2020 era), redesigned post-2020
- Bybit: 2024 operational incident (resolved)
- Crypto.com: 2022 incident affecting 483 accounts (fully reimbursed, clean since)
Kraken's security maturity is among the strongest in the industry. The 2017 incident is a real data point but the response (full reimbursement, framework redesign, sustained clean record) demonstrates appropriate operational maturity.
The continuing reminder: holding bulk long-term crypto in self-custody (hardware wallet) rather than on any exchange remains the safest practice.
Australian tax treatment
Kraken activity is taxed identically to any other AU crypto exchange:
- Spot disposals are CGT events (Section 102 ITAA 1997)
- Staking rewards are ordinary income at AUD value on receipt
- Earn rewards are ordinary income on receipt
- NFT activity treated per ATO NFT guidance (typically CGT events)
- Futures / margin (when accessible to AU) treated as ordinary income (no CGT discount on synthetic positions)
Kraken provides transaction history exports compatible with crypto tax software. Summ, Syla, and Koinly all support Kraken imports.
The 50% CGT discount applies to spot disposals on assets held more than 12 months by individuals and trusts. See the crypto tax pillar and the EOFY 2026 checklist for the full ATO framework.
Kraken ratings breakdown
Seven criteria scored independently to produce the overall rating.
Pros and cons
The summary view of trade-offs.
Who Kraken is for
Kraken is the right pick if:
- You weight dual-regulator pedigree as a primary signal (ASIC AFSL + AUSTRAC DCE is unique among major AU-accessible exchanges)
- You're a security-conscious investor who values transparent Proof of Reserves audits
- You're an SMSF trustee with fiduciary obligations and want maximum regulatory protection
- You trade on Kraken Pro at $1m+ 30-day volume (VIP tier becomes competitive)
- You value 13+ year operating history and US-headquartered parent
Kraken is NOT the right pick if:
- You're an active spot trader at retail volume prioritising lowest fees (Binance Australia / CoinSpot Markets at 0.10% are materially cheaper)
- You want the broadest coin selection (Bybit 600+, CoinSpot 510+ vs Kraken 220+)
- You want unrestricted crypto derivatives (Kraken's AU futures access is restricted by ASIC retail caps)
- You prefer app-first consumer UX (CoinSpot or Crypto.com have more polished mobile)
- You're new to crypto (Kraken's interfaces target experienced users; CoinSpot is easier for beginners)
Alternatives for Australian residents
For lower fees with full AU regulatory protection (AUSTRAC DCE):
- CoinSpot Review - 0.10% Markets tab, AUSTRAC since 2013, top pick 2026.
- Binance Australia Review - 0.10% spot, broader coin selection.
For premium-pedigree alternatives:
- Coinbase Australia Review - NASDAQ-listed parent, 14-year clean security record.
For AU-specialist alternatives:
- Independent Reserve Review - SMSF specialist with OTC desk.
- Digital Surge Review - Brisbane-based, modern UX.
- Cointree Review - Melbourne-based, auto-DCA.
For unrestricted derivatives (offshore):
- Bybit Review - top-5 global, perpetual futures + options. Not AUSTRAC.
See also: Best Crypto Exchanges Australia 2026 for the full ranked field.
Frequently asked questions
Yes. Kraken holds the strongest dual-regulator profile in the Australian crypto market. The exchange is registered with both ASIC under AFSL 547223 and with AUSTRAC as a Digital Currency Exchange. This dual licensing is rare - most crypto exchanges hold only one (typically AUSTRAC DCE registration alone). The combination provides client protections under both ASIC's financial-services framework AND AUSTRAC's AML/CTF framework, materially stronger than either alone. The parent (Payward Inc) is San Francisco-based, founded 2011 - 13+ year operating history. Strong security record with one significant incident in 2017 (fully remediated; clean since).
Kraken has two interfaces with materially different fee structures. The Kraken (Buy/Sell consumer interface) uses spread-based pricing with effective costs of approximately 0.9% to 1.5% per trade. The Kraken Pro interface uses standard maker/taker fees: 0.25% maker / 0.40% taker on the entry tier (~$0-50k 30-day volume). VIP tiers reduce significantly: $1m+ 30-day volume reaches 0.04% maker / 0.10% taker; $10m+ reaches 0.00% maker / 0.10% taker. Active retail traders should always use Kraken Pro - the Buy/Sell consumer interface is for casual users and the spread premium compounds painfully on frequent trades.
Kraken accepts AUD deposits via PayID, Osko, BPAY, and bank transfer through its AU-supported payment processor relationships. PayID and Osko transfers credit instantly during banking hours; BPAY 1-2 business days; bank transfer 1-3 business days. There are no AUD deposit fees on supported methods. This matches the AUD on-ramp quality of CoinSpot, Binance Australia, Independent Reserve, Coinbase Australia, and Crypto.com - all materially better than offshore exchanges like Bybit.
AUSTRAC DCE registration is the standard requirement for Australian crypto exchanges - it covers AML/CTF (anti-money-laundering and counter-terrorism-financing) compliance. ASIC AFSL is the standard requirement for Australian financial services firms - it covers retail-investor protection, conduct standards, and dispute resolution. Most crypto exchanges hold AUSTRAC DCE only because crypto-spot trading typically does not require an AFSL. Kraken voluntarily holds both, providing a stronger dual-regulator framework: AUSTRAC oversees the AML/CTF side, ASIC oversees retail conduct, and AFCA dispute resolution applies under the AFSL. This is genuinely unique among major AU-accessible exchanges.
Spot trading on 220+ coins via the Kraken or Kraken Pro interfaces. Staking on supported proof-of-stake coins (ETH, ATOM, ALGO, SOL, DOT, ADA, etc) with reliable yield delivery. NFTs via Kraken NFT marketplace (less liquid than dedicated NFT venues). Some futures and margin products are available globally but materially restricted for AU retail clients under ASIC retail leverage caps (2:1 max on crypto CFDs). Active derivatives traders typically use offshore venues (Bybit, Binance Global) for unrestricted access. For AU spot users, Kraken's product offering is comparable to Coinbase and slightly narrower than Binance Australia.
Kraken experienced a significant security issue in June 2017 affecting a subset of customer accounts. The incident was promptly remediated with full customer reimbursement and a redesigned wallet management framework. There have been no major incidents in the 8+ years since. Kraken publishes Proof of Reserves audits using Merkle-tree verification, allowing users to independently verify their own balance is included in published reserves. Cold storage holds the majority of customer funds with multi-signature controls. Security maturity is comparable to Coinbase but with one historical incident vs Coinbase's clean record.
Kraken has the unique dual ASIC + AUSTRAC regulatory profile that Coinbase does not have. Coinbase has the NASDAQ-listed parent (uniquely transparent public-company governance) and a longer clean security record (since 2012 vs Kraken's 2017 incident). Both have similar entry-tier Pro/Advanced Trade fees (Kraken Pro 0.25%/0.40% vs Coinbase Advanced Trade 0.40%/0.60%). Kraken has slightly broader coin selection (220+ vs 270+ at Coinbase - both narrower than Binance / CoinSpot). For dual-regulator-pedigree-focused investors, Kraken wins. For NASDAQ-transparency-focused investors, Coinbase wins. Both are strong AU-accessible options.
Application submitted 2026-04-29 via the Impact platform; approval pending as of this review's last refresh (May 2026). Compliance review for crypto programs typically takes 7-21 business days on Impact. On approval, the /go/kraken cloaked link will route through Impact's tracking. The Kraken affiliate program offers RevShare 20% on traded revenue (lifetime, industry-standard structure). No commission is currently being earned on traffic from this site. The review reflects independent analysis based on public information; the editorial position will not change based on affiliate-program approval.
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