Kraken has been at the forefront of blockchain development since 2011. Furthermore, it has gained a reputation as one of the most trustworthy venues to purchase and sell crypto online due to its solid service, competitive fees, flexible financing options, and stringent security standards. With daily trading volumes over $1.4 billion, Kraken is currently one of the world’s largest cryptocurrency exchanges, according to data from CoinMarketCap.com. Kraken presently operates in almost 190 countries worldwide and has given out over $100 million in staking rewards to its customers in the first half of 2021. Among other reasons for its widespread use, it offers additional technologically advanced products and services, such as a trading platform, mobile app, Futures, Margin, Indexes, and OTC. However, in order to fully utilize the platform, you must first complete Know-Your-Customer (KYC), which we will go over in further depth in this guide below. In short:
Kraken offers four account tiers, each with its own verification requirements: Starter, Express (for US residents), Intermediate, and Pro;The verification procedure for all levels excluding the Pro is mostly automated and might take anything from a few minutes to a couple of days for the most advanced tier;Each account verification level provides additional funding options and greater limits, with Pro being the most advanced.
The benefits of completing full ID verification on Kraken
Completing a KYC procedure with Kraken offers several benefits as stipulated below:
Global financial regulations compliance. Keeping abreast of regulatory developments in the blockchain industry and enhancing the platform’s transparency and reliability, Kraken suggests that clients verify their accounts fully. Aside from money laundering and terrorism funding, Kraken seeks to decrease fraud risks. When operating, Kraken complies with all legal and regulatory norms. For example, Kraken is a registered Money Services Business (MSB) with FinCEN in the United States and FINTRAC in Canada.
Increased account limits and enabled deposit and withdrawal options. Customers who complete Kraken’s KYC processes may take advantage of the platform’s entire array of trading, deposit, and withdrawal benefits, as well as other features. For instance, you may begin trading cryptocurrencies by providing some basic information, or you can advance to the ‘Intermediate’ or ‘Pro’ level, which lets you deposit, withdraw, and trade with fiat currencies. Check out Kraken’s KYC support section for a complete list of advantages for each verification level.
Building trust and protecting user’s interests and investments. By implementing KYC processes throughout Kraken’s crypto exchange, customers’ trust is bolstered, as they can be guaranteed that the platform’s users are genuine and verified. Furthermore, onboarding vetted consumers ensures legitimacy and prevents identity theft, enhancing Kraken’s clients’ trust and overall platform experience.
Two-Factor Authentication (2FA)
Before completing Kraken’s KYC process, users can take several steps to secure their accounts. As an additional layer of security for your Kraken account, two-factor authentication (2FA) provides the following benefits:
The only person who can access your account is you, and only you;
After signing in, you are the only one who can perform certain activities, such as depositing or withdrawing funds or trading.
When 2FA is enabled on your account, you’ll need a 2FA passcode to log in, make deposits, withdraw money, or conduct trades. An app on your phone (where the passcode changes every 30 seconds) or a small USB device like the YubiKey can store this additional passcode (in which the passcode changes after each use). Therefore, a prospective attacker needs not only your username and password but also your 2FA device to obtain access (phone or YubiKey). Note: For further information concerning 2FA and the different methods that may be activated and their detailed functions, read out in-depth on Kraken’s safety guide.
How to verify your identity on Kraken (step-by-step)
Before starting the ID verification process on Kraken, you must log in to your account.
Step 1
In order to begin the ID verification, click on your account’s icon in the top right corner and choose ‘Get Verified’ from the drop-down menu. You may be provided with slightly different verification screens depending on your geographic location and the international as well as local financial regulations. For an extensive explanation of the restrictions and supported countries, make sure to read Kraken’s support page. US individuals, with the exception of residents in New York, Texas, Washington, and US territories, will be presented with the ‘Express’ verification option as the most basic KYC level to start trading on Kraken. Residents of other supported countries, on the other hand, will typically see the ‘Starter’ option as their initial verification step.
Express Verification
Step 2
It is necessary to complete the basic identity verification in order to begin trading on Kraken. Therefore, US residents, with the exclusion of New York, Texas, Washington, and US territories, should start with the ‘Express’ tier. To start, click ‘Verify’ under the ‘Express’ section.
Step 3
In the following screen, you will be asked to provide basic details about yourself, such as your full legal name, date of birth, occupation, complete address, mobile phone number, and the last four digits of your social security number (SSN).
Step 4
Your initial information will be verified within 30 seconds, but if Kraken deems that further information is required, you will be requested to provide the following (see picture below). Once you have supplied the necessary information, your ‘Express’ status will change to ‘Pending,’ and if Kraken is satisfied with your data, it will change to ‘Verified’ promptly. Successful completion of the ‘Express’ verification enables US clients (with the exception of users from the states of New York, Texas, and Washington, as well as US territories) to trade crypto, deposit cash, with a lifetime maximum of $9K, withdraw cash with a monthly limit of $9K, and earn on-chain rewards through staking.
Starter Verification
Step 5
‘Starter‘ level of identity verification is available for clients based in non-restricted countries, Texas and US territories, except Australia. The procedure usually takes 1 to 2 minutes. If you want to start the basic verification procedure, click ‘Verify‘ beneath the ‘Starter‘ section.
Step 6
You will be prompted to give some basic information about yourself on the next screen. Your full legal name, date of birth, address details, and phone number are all mandatory fields. After you have finished filling out all of the fields, click ‘Continue’ to finish the procedure. You should be returned to the main verification page, where the status of the ‘Starter’ level should read ‘Pending.’ In a couple of minutes, once your information has been verified, you will be granted the status of ‘Verified’. ‘Starter’ level of verification allows users to perform unlimited cryptocurrency deposits, buy, sell, and convert crypto, as well as withdraw $5K/day whilst earning rewards through staking.
Intermediate Verification
Step 7
Those who are seeking to increase their trading limits must complete ‘Intermediate’ verification, which entails $100K/day, $500K/month bank transfer limit, unlimited cryptocurrency deposits, $500K/day crypto withdrawals, limited trades with margin, and earn rewards with staking as well as trading of crypto futures to non-US only users. To begin the ‘Intermediate’ ID verification of Kraken’s KYC process, click ‘Verify.’
Step 8
During this process, you will be asked to provide your occupation and upload an appropriate ID in the form of a passport, driver’s license, or ID card. You can either take a picture of your document using your computer’s camera or simply click on ‘Upload photo.’ After you have uploaded your ID, you will be asked to wait a minute for it to be reviewed and validated. Furthermore, you will be required to produce proof of residency documentation at this point. The following is a list of valid residency documents accepted by Kraken, however, it is not exhaustive:
Bank statement;Credit card statement;Utility bill (water, electricity, gas, internet, phone);Payroll statement -or- Official salary document from employer;Insurance statement;Tax document;Residence certificate.
However, for the up-to-date document requirements, check Kraken’s support page. After uploading all of the necessary papers, click ‘Submit’ and wait a few minutes for your ‘Intermediate’ status to be verified. Residents of the United States or South Africa, or those who plan to use the banks of those countries to fund their accounts, must additionally provide a good quality face photo as an extra step. Furthermore, due to regulatory requirements, US customers must provide a valid SSN (Social Security Number) or ITIN (Individual Taxpayer Identification Number).
Pro Verification
Step 9
Those wishing to unlock the unlimited benefits of the Kraken’s platform, may want to obtain ‘Pro’ level of verification. To begin the most advanced KYC procedure, click ‘Verify’ under the ‘Pro’ section. Please note that you must first complete ‘Intermediate’ identity verification before you can proceed with the most advanced tier.
Step 10
You will be taken to the following page, where you will be asked to provide the motives for the access to the ‘Pro’ level verification. In this screen, you will need to choose the most relevant feature(s) for your situation and then click the next button.
Step 11
In the following three steps, you will be expected to give details about the account’s purpose, usage, and your financial situation. As part of the ‘Pro’ verification, Kraken will require you to input the purpose of the account, along with the length of your crypto trading experience. You will also be asked some additional questions regarding arbitrage and margin trading, as well as the number of trades you are expected to make monthly.
Step 12
Kraken, likewise, will ask you to submit financial information about your job, including the name of the company, title/position, and any other pertinent details. Furthermore, you will be expected to fill out other fields such as your liquid net worth, total net worth, and sources of wealth.
Step 13
Thirdly, you will be asked questions regarding your usage of the account. To illustrate, in addition to the USD withdrawal amount, you will need to select the number of fiat currencies that you anticipate depositing into your account. Finally, in order to complete the ‘Pro’ identity verification, the country of your bank will be required. Your ‘Pro’ verification will be marked as ‘Pending’ once you have completed all of the steps and submitted the information. If your application is approved, you will be verified within a few days. However, Kraken reserves the right to request further documents through email in order to expedite the KYC process and ensure full compliance with the national and local regulations.
Final thoughts
Overall, completing KYC is beneficial for Kraken users since trading fiat and digital currencies on the site is possible once your account has been confirmed and financed while complying with anti-money laundering and anti-terrorist financing regulations. Whatsmore, when it comes to the trading of digital assets, Kraken takes every precaution to prevent fraud and ensure compliance with KYC and AML requirements. Therefore, users can rest assured when they are using a secure, regulated exchange that offers customers the opportunity to trade a variety of digital assets in addition to buying and selling more than 55 cryptocurrency coins and tokens, as well as seven fiat currencies.
