Safeguarding of Funds for EEA and UK clients

Last updated: 25/03/2026

Economic European Area (EEA) Clients

Cash funding services for EEA clients are provided by the Kraken entity, Payward Ireland Limited (“PIL”). PIL is licensed as an E-Money Institution (EMI) with the Central Bank of Ireland (CBI) (Registration no. C453020).

PIL is not a bank and does not hold the funds received from you as a deposit. PIL is required to use a process called ‘safeguarding’ to protect the funds that EEA clients send to us or have credited on their e-wallet account in any currency. This means that the funds we receive for issuing e-money or executing payments are kept separate from any other funds that PIL may hold. We also cannot use them for any other purpose than the issuance of e-money or making payments for you.

As an EMI, PIL isn’t covered by the Deposit Guarantee Scheme (“DGS”), the website of which can be found here: https://www.depositguarantee.ie/. The main difference between DGS protection and safeguarding is that the DGS protection is covered by an independent statutory organisation, while safeguarding protection is provided by us.

If a DGS-protected firm were to fail, the organisation that covers the scheme is legally obliged to return your funds, but will only do so up to the maximum compensation amount (€100,000 per eligible person, per firm). If an EMI (like PIL) fails, then your claims will instead generally be paid from the safeguarded funds up to the total balance of your e-wallet. You should be aware that, if this did happen, then because DGS protection will not apply:

  • •

    it could take longer for funds to be returned to you than if DGS protection did apply; and

  • •

    while the amount of your money that you should get back is not limited to €100,000 (as it would be if DGS protection did apply), some costs could be deducted by our administrator or liquidator and you may not get all of your money back.

You might also want to consider the information that the Bank of Ireland has published on its own website.

United Kingdom (UK) Clients

Cash funding services for UK clients are provided by the Kraken entity, Payward Service Limited (“PSL”). PSL is an Electronic Money Institution (an “EMI”) which is authorised and regulated by the FCA (FRN 1010381). PSL is not a bank and does not hold funds received from you as a deposit.

PSL is required to use a process called ‘safeguarding’ to protect the funds that UK clients send to us or have credited on their e-wallet account in any currency. This means that the funds we receive for issuing e-money or executing payments are kept separate from any other funds that PSL may hold. We also cannot use them for any other purpose than the issuance of e-money or making payments for you.

As an EMI, PSL isn’t covered by the Financial Services Compensation Scheme (“FSCS”), the website of which can be found here: https://www.fscs.org.uk/. The main difference between FSCS protection and safeguarding is that the FSCS protection is covered by an independent statutory organisation, while safeguarding protection is provided by us.

If a FSCS-protected firm were to fail, the organisation that covers the scheme is legally obliged to return your funds, but will only do so up to the maximum compensation amount (£85,000 per eligible person, per firm). If an EMI (like PSL) fails, then your claims will instead generally be paid from the safeguarded funds up to the total balance of your e-wallet. You should be aware that, if this did happen, then because FSCS protection will not apply:

  • •

    only the balance that is held in the e-wallet is safeguarded and no other balances in the Kraken eco-system (e.g. your crypto balance) are protected;

  • •

    it could take longer for funds to be returned to you than if FSCS protection did apply; and

  • •

    while the amount of your money that you should get back is not limited to £85,000 (as it would be if FSCS protection did apply), some costs could be deducted by our administrator or liquidator and you may not get all of your money back.

You might also want to consider the information that the FCA has published on its own website.

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