Exchange review
Kraken and the first major global crypto exchange MiCA licence - deep dive 2026
On 2025-06-26 the Central Bank of Ireland issued Kraken the first major global MiCA CASP licence (No. C559106). 15 years with no security incidents, 200+ coins, Pro mode at 0.25%/0.40%, staking on 17 coins. Comparison with Bitvavo, Bitstamp, Coinbase, eToro and Lightyear.
On 26 June 2025 the Central Bank of Ireland issued Kraken the first major global MiCA CASP licence. Kraken's 15-year track record is the industry gold standard - the only one among the world's top-10 crypto exchanges with no major security incidents. In this deep dive we look at what 2025-06-26 means for European crypto regulation, why Kraken Pro mode is 3.75× cheaper than the standard interface, and how Kraken differs from Bitvavo, Bitstamp, Coinbase and Lightyear.
Kraken and the first major global crypto exchange MiCA licence - why 2025-06-26 is a historic date
On 26 June 2025, the Central Bank of Ireland (CBI) issued Kraken the first major global MiCA CASP licence (No. C559106). It was a moment that formally marked a new chapter in European crypto regulation - the first time a large US-based crypto exchange received full MiCA compliance, allowing it to provide regulated services across all 30 EEA countries under a single name.
In this deep dive we look at what 2025 meant for Kraken's history, how its 15-year security track record made it the global benchmark, what using Kraken Pro mode actually means (which is 3.75× cheaper than the standard interface) and why the IPO pause in March 2026 reveals a broader market context instability. We also look at how Kraken differs from Bitvavo, Bitstamp, Coinbase and Lightyear - the main competitors in the Norriwire region.
In short
| Item | Status |
|---|---|
| Legal name | Payward, Inc. (parent); Payward Europe Solutions Limited + Payward Global Solutions Limited (EU) |
| Founders | Jesse Powell, Thanh Luu, Michael Gronager (2011) |
| Founded | 2011 (July, San Francisco) |
| Current co-CEOs | Dave Ripley (since 2023-04) and Arjun Sethi (since 2024-10) |
| Chairman | Jesse Powell (since 2023-04) |
| MiCA CASP licence | Central Bank of Ireland, 2025-06-26 (licence No. C559106) |
| First major global MiCA CASP | Yes |
| Security incidents in 15 years | None (industry gold standard) |
| Client count | 10M+ globally |
| Cryptocurrencies | 200+ |
| Fiat currencies | EUR, USD, GBP, CHF, AUD, CAD, JPY |
| Pro maker/taker | 0.25% / 0.40% |
| Proof of Reserves | Yes, 2× per year |
| Available in the Baltics/Nordics | Yes (all 30 EEA countries) |
Context - why MiCA became real in 2025
The Markets in Crypto-Assets (MiCA) regulation came into full force on 30 December 2024. For the first six months (until June 2025), European crypto exchanges mostly operated under transitional arrangements with member-state VASP/VARA registrations. The transition period runs until 1 July 2026, by which time all providers must hold a full MiCA CASP licence.
Kraken's June 2025 move set it apart as a market leader in several ways:
1. The first major US exchange with MiCA. Before Kraken, other major US exchanges (Coinbase, Gemini, Bitstamp, Crypto.com) were still working through MiCA authorisation. Kraken received it 6 months after MiCA came into full force.
2. Two-entity structuring. The CBI issued separate licences to two Payward entities in Ireland:
- Payward Europe Solutions Limited - custody, exchange, order execution
- Payward Global Solutions Limited - trading platform operation
This reflects MiCA's requirement for licences to be split by service type.
3. EEA passport. Kraken clients across all 30 EEA countries (27 EU + Norway, Iceland, Liechtenstein) are now served by a single Irish MiCA entity. Before 2025-06-26 Kraken EU clients were served via various national VASP registrations (DE BaFin, MT MFSA, etc.) - now everything is consolidated.
4. A market signal. Kraken's MiCA licence signalled that a large and complex US-based crypto exchange can pass full European regulatory compliance. That opened the door later widened by Coinbase (also in Ireland).
Historical context - 15 years from the Mt. Gox experience to a global leadership position
Kraken's story has a unique starting point. Jesse Powell, a young entrepreneur with prior internet-gaming experience, consulted for Mt. Gox - the world's first major Bitcoin exchange - in 2011 after it was hacked. The experience revealed that Mt. Gox did not meet the serious security standard required for Bitcoin to scale.
Rather than try to fix the existing exchange, Powell decided to build a new one with security as the foundation. In July 2011, together with Thanh Luu and Michael Gronager, he founded Kraken in San Francisco. The core principle: every engineering decision prioritises security over fast feature shipping.
The result after 15 years: Kraken is the only one among the world's top-10 crypto exchanges with no major security incidents involving client-fund losses. That cannot be said for FTX (2022), Mt. Gox (2014), Bitfinex (2016), Coincheck (2018), KuCoin (2020), BitGrail, Cryptopia and others.
Key milestones after founding:
- 2011 - founded in San Francisco
- 2013 - public Bitcoin trading launch
- 2014 - first crypto exchange with Proof of Reserves audits (covered by Stefan Thomas in Bitcoin Magazine)
- 2017 - margin trading launch
- 2019 - Kraken Futures (acquisition of Crypto Facilities, a UK FCA-regulated entity)
- 2022 - regular Proof of Reserves audits 2× per year with Armanino
- 2023-04 - Dave Ripley takes over as CEO, Jesse Powell becomes Chairman
- 2023-11 - SEC files suit against Kraken
- 2024-10 - 15% layoffs, Arjun Sethi becomes co-CEO
- 2025-01 - US staking restored
- 2025-03 - SEC drops 2023 lawsuit without penalties
- 2025-06-26 - CBI MiCA CASP licence - the first major global US crypto service provider
- 2025-11 - $800M Series D at a $20B valuation
- 2025-11-19 - Confidential S-1 filing with the SEC
- 2026-03-09 - Nasdaq partnership announcement (Equities Transformation Gateway)
- 2026-03-18 - IPO paused due to poor market conditions
- 2026-05 - Arjun Sethi says Kraken is "80% ready" for IPO
Standard vs Pro - why one user mistake costs 3-5× more
The biggest Kraken UI problem in the Norriwire region is that most beginners use the standard interface, not Pro mode. The fee gap is critical:
| Operation | Standard Kraken | Kraken Pro |
|---|---|---|
| €100 Bitcoin buy | ~€1.50-2.00 | ~€0.40 |
| €1,000 Bitcoin buy | ~€15-20 | ~€4 |
| €10,000 Bitcoin buy | ~€150-200 | ~€40 |
| €100,000 Bitcoin buy | ~€1,500-2,000 | ~€400 (or less with volume tiers) |
Practical implication: the biggest saving comes from the UI choice, not the exchange choice. A user who runs €10,000 a month through Kraken Pro saves around €150 in fees compared with the standard - that is almost the full staking yield on the same amount.
Why don't many use Pro? Three main reasons:
1. UI complexity. The Pro interface initially looks intimidating with candlestick charts, an order book, trade history and advanced order types. Beginners don't know how to work with limit orders.
2. Fee-structure opacity. Standard Kraken's Instant Buy says "no fees" on the big buttons, but in fact the 1% spread is built into the price. The average user doesn't grasp that the price they see already includes the fee.
3. Lack of awareness. Kraken doesn't actively market Pro to beginners. That's a business choice - the higher fees on the standard UI are a Kraken revenue source.
Tip for a Baltic/Nordic user: always switch to Kraken Pro after your first buy. The Pro interface lives at Pro.kraken.com or the Pro selector in the mobile app. The account and balance are the same.
Product range - why Kraken is more than just an exchange
Kraken is not just a spot crypto exchange. Its product portfolio is one of the most complete among regulated MiCA exchanges in Europe.
Spot trading. 200+ cryptocurrencies, from Bitcoin and Ethereum to less-known altcoins. Available on both the standard interface (Instant Buy 1%) and Pro mode (0.25%/0.40%).
Kraken Margin. Spot trading with up to 5× leverage. Lets users build longs and shorts. Available to EU clients within ESMA limits.
Kraken Futures. A derivatives product - perpetual and fixed-date contracts. Acquired in 2019 from Crypto Facilities (UK FCA-regulated). Available across the EEA.
Staking. 17 coins (ETH, SOL, ADA, DOT, ATOM, MATIC, Tezos, Cosmos and others). ETH staking yields are typically 3-5% APR. Stake is segregated from the exchange's balance sheet - the client retains ownership.
Kraken OTC Desk. For large trades (typically 100k+ USD equivalent). An OTC trader executes trades directly, off the public order book. Competes with Bitstamp OTC and GCEX prime brokerage.
Kraken Wallet. Non-custodial DeFi wallet (separate from exchange custody). Supports Ethereum, Solana, Bitcoin and other networks. Free. Competes with MetaMask and Trust Wallet.
Krak Card (2025-Q4). Visa Debit card with crypto cashback rewards. Competes with Crypto.com Visa Card and eToro Money Card. Still a new product line - early results show 1-2% cashback on some coins.
Tokenized stocks (rolling out 2026). In partnership with Nasdaq, Kraken plans to launch tokenised stocks - announced 2026-03-09, with the full product expected H1 2027. Potentially a major strategic step that frames Kraken as a multi-asset platform - similar to eToro and Lightyear.
The 2026 IPO pause and its context
A planned Kraken IPO has been one of the crypto industry's big themes in 2025-2026. The timeline:
- 2025-11-19: Confidential S-1 filing with the SEC. Plan: Q1 2026 IPO at a $20B valuation.
- 2025-11: $800M Series D raise at a $20B valuation. Lead investor and terms not disclosed.
- 2026-03-09: Nasdaq partnership announcement - Equities Transformation Gateway, planned launch H1 2027.
- 2026-03-18: IPO paused. Reason: market conditions - Bitcoin down 44% from its late-2025 peak. Kraken's advisers decided not to price below the $20B private valuation.
- 2026-05: Arjun Sethi says Kraken is "80% ready" for the IPO. Suggests the pause is tactical, not strategic.
How does that affect a Baltic/Nordic user?
Directly - little. Client funds and services do not depend on the IPO status. Payward Europe Solutions Limited operates independently of the IPO process.
Indirectly - a few aspects:
-
Liquidity impact. If Kraken's IPO had happened in Q1 2026 at $20B, it would have been a signal to institutional investors to enter the crypto sector. The pause delays that signal to Q3-Q4 2026 or later.
-
Competitive landscape. Coinbase is already NASDAQ-listed (since 2021). If Kraken's IPO slips to 2027, Coinbase remains the only NASDAQ-listed large crypto exchange - which matters for institutional investors.
-
Strategic signal. The pause indicates Kraken's leadership is willing to walk away from a bad deal. That is a sign of discipline, not weakness.
Practical aspects of MiCA compliance
Kraken's MiCA CASP licence (2025-06-26) affects Baltic/Nordic users in several practical ways:
1. A single European entity. Before 2025-06-26 Kraken's Latvian clients were technically served through different Payward subsidiaries (DE BaFin, MT MFSA, etc.). After the licence everything is consolidated at Payward Europe Solutions Limited (Dublin).
2. Latvijas Banka confirmation. Kraken is available in Latvia via the EU passport mechanism. Latvijas Banka does not impose additional requirements - the CBI licence is sufficient.
3. Client-fund safety. MiCA requires segregation of client funds from the exchange's balance sheet. Kraken already met this standard before MiCA, but it is now formally regulated.
4. Regular Proof of Reserves. MiCA does not require Proof of Reserves mandatorily, but Kraken runs them 2× per year. Auditor: Saxe & Partners LLP (Armanino until 2022, when Armanino exited the crypto audit space after the FTX scandal).
5. Tax reporting. Kraken generates an API-based tax-reporting file that can be imported into Koinly, Divly and other crypto-tax tools. Latvia's VID accepts this file as a basis for completing the LV D-21 form.
Comparison with competitors in the Norriwire region
Kraken is not the only regulated option. Competition is serious:
| Factor | Kraken | Bitvavo | Bitstamp | Coinbase | eToro |
|---|---|---|---|---|---|
| Founded | 2011 | 2018 | 2011 | 2012 | 2007 |
| Spot maker | 0.25% | 0.15% | 0.15-0.25% | 0.40% | 1% spread |
| Spot taker | 0.40% | 0.25% | 0.25-0.30% | 0.60% | 0.6-1% |
| Coins | 200+ | 200+ | 80+ | 250+ | 80+ |
| Staking | 17 coins | Limited | None | Several | None |
| Futures | Yes | None | None | None | CFD only |
| OTC desk | Yes | None | Yes | Coinbase Prime | None |
| MiCA CASP | CBI (2025-06-26) | DNB | CSSF | CBI | CySEC |
| NASDAQ-listed | IPO paused | Private | Private | Yes (since 2021) | Yes (since 2025) |
Key takeaway: Kraken is not the cheapest (Bitvavo is cheaper at entry), but it has the broadest product range. For a serious Norriwire user, the choice is between:
- Bitvavo for the beginner - simple UX, low fees
- Kraken Pro for the experienced trader - 0.25%/0.40% + 200+ coins + futures + staking
- Bitstamp for institutional/OTC - Luxembourg's senior exchange
- Coinbase for the brand-conscious user - NASDAQ-listed
- eToro/Lightyear for the multi-asset user - stocks + crypto in one account
Five real risks
1. Standard UI vs Pro UI user mistake. The biggest loss for Norriwire users comes not from Kraken itself - it is from not knowing to use Pro. The 3.75× fee gap can add up to hundreds of euros per year.
2. US parent legal risk. The SEC dropped the 2023 lawsuit in March 2025, but the US regulatory environment could shift again (new administration, new precedents). EU client funds are separated, but group reputation feeds through to trust.
3. IPO uncertainty and strategic dynamics. 2024-10 layoffs, 2025-11 $800M, 2026-03 IPO pause - that's a high corporate-dynamics level. It does not operationally affect client funds, but it suggests the company is still finding its optimal model.
4. Crypto withdrawal fee variability. Unlike Bitvavo, where fees are fixed, Kraken Bitcoin withdrawal fees can range from $0.50 to $25 depending on network conditions. It is honest (it reflects on-chain reality), but unfamiliar to users.
5. The tokenised stocks project is unsettled. The Nasdaq partnership announced on 2026-03-09 indicated an H1 2027 launch. Such multi-asset extensions always carry risk - technically complex and regulatorily uneven. It is not yet clear whether Kraken will follow the eToro/Lightyear-style multi-asset model or stay a crypto-specialised exchange.
Who Kraken really fits
The experienced trader with €10k+/month volume. Pro 0.25%/0.40% is competitive, and volume tiers (starting at $50k+ per month) bring fees down further.
The multi-asset crypto enthusiast. 200+ cryptocurrencies, margin, futures, staking on 17 coins, OTC desk. Practically every asset is available.
The security-first user. A 15-year gold-standard security track record is unmatched in the European crypto market. PoR audits 2× per year.
The staking enthusiast. 17 coins with 3-5% APR on ETH is a competitive offering.
The futures and margin trader. Kraken Futures is one of the more sophisticated products within ESMA rules.
The multi-fiat user. EUR/USD/GBP/CHF/AUD/CAD/JPY is the largest fiat set.
Kraken does not fit:
- Complete beginners (start with Bitvavo)
- Users wanting LV/LT/EE UI localisation
- DeFi enthusiasts wanting a pure DEX
- Users with small recurring buys
- Card-deposit users (3.75% card fee)
Verdict
Kraken is not a scam - it is a 15-year-old (since 2011) global crypto exchange with the industry's best security track record, the first major global MiCA CASP licence from Ireland's Central Bank (2025-06-26) and the widest product range among MiCA-regulated exchanges in the Norriwire region. It has been through multiple market cycles and come out stronger from each.
The key choice factor for a Baltic/Nordic user: use Kraken Pro, not the standard interface. The account is the same, the UI differs, the fees are 3.75× lower. That is the single biggest improvement any Kraken user can make.
| Your profile | Recommendation |
|---|---|
| Complete beginner (<€500/month) | Bitvavo (lower entry barrier) |
| Mid-volume (€1-10k/month) | Kraken Pro (0.25%/0.40%) |
| Active trader (€50k+/month) | Kraken Pro with volume discounts |
| Staking enthusiast | Kraken (17 coins) |
| Futures trader | Kraken Futures |
| OTC blocks | Kraken OTC or Bitstamp |
| Multi-asset (stocks + crypto) | eToro or Lightyear |
| Security-first | Kraken |
Remember: Kraken will never ask for your bank details by phone or email. If someone writes from "Kraken" about an urgent payment or password change - it is a scammer. If someone offers a "Kraken VIP club" or "investment opportunities" on social media - that is also a scam.
Related: full Kraken profile · MiCA explainer for the Baltics · Bitvavo profile · Coinbase profile · eToro deep dive · Lightyear deep dive
Article prepared 16 May 2026. Sources: Kraken official site, Kraken MiCA press release - CBI, Kraken live 30 EEA countries, Kraken regulation page, Kraken IPO pause - CoinDesk, SEC drops Kraken lawsuit - Insurance Journal, Kraken Wikipedia profile, Central Bank of Ireland register (No. C559106), Kraken Proof of Reserves attestations (Saxe & Partners LLP). This is not investment advice.