Nils Silinevics
Partner · AML & Crypto Compliance · Former FIU Investigator
Kraken is registered with BaFin (Federal Financial Supervisory Authority) in Germany. That means we have a direct regulatory path to resolve your freeze. Swiss legal team with BaFin expertise. 90%+ success rate.
Kraken holds BaFin banking license (2020) — one of few exchanges with full banking license; Payward GmbH in Germany
BaFin treats crypto custody as a regulated financial activity — exchanges need a BaFin crypto custody license to serve German customers legally
This matters because it determines which regulatory body has authority over your case — and whether you have a direct complaint path or need cross-jurisdictional legal action.
Good news: Since Kraken is registered with BaFin (Federal Financial Supervisory Authority), we have a direct regulatory complaint path. If Kraken doesn't resolve your case within a reasonable time, we escalate to BaFin (Federal Financial Supervisory Authority) — and the platform knows this.
under KWG §2(1) sentence 1 no. 7-10 (crypto custody license), you can file a complaint with BaFin against any licensed crypto custody provider
Under German Banking Act (Kreditwesengesetz, KWG) + GwG (Geldwäschegesetz, AMLD5 transposition), Kraken must conduct customer due diligence and can freeze accounts during AML investigations. However, they must also:
If Kraken doesn't meet these obligations, we escalate to BaFin (Federal Financial Supervisory Authority) and file a formal legal submission. For a broader comparison of how Germany's rules stack up against other jurisdictions, see our AML laws by country reference.
crypto held >1 year: tax-free; <1 year: income tax up to 45% + solidarity surcharge
If your Kraken account is frozen, you may still need to declare your crypto holdings on your Germany tax return — even if you can't access them. Under Germany law, the tax obligation may apply regardless of whether the funds are accessible. We recommend consulting a German tax advisor.
If the freeze causes you to miss a tax deadline, we can provide documentation for the BaFin (Federal Financial Supervisory Authority) and tax authority explaining the situation.
A German investor received a source-of-funds demand from Kraken after receiving a large crypto transfer. Kraken required full documentation under German Banking Act (Kreditwesengesetz, KWG) + GwG (Geldwäschegesetz, AMLD5 transposition). We compiled a structured source-of-funds package with bank statements, exchange history, and BaFin (Federal Financial Supervisory Authority)-compliant documentation. Funds were released within 3 weeks after our formal legal submission to Kraken's compliance team.
Details anonymized to protect client confidentiality. Swiss professional secrecy applies.
We analyze your Kraken account, transaction history, and Germany regulatory context to identify the exact trigger. Was it a Chainalysis risk flag? A sanctions screening match? A source-of-funds demand? Each requires a different strategy.
We prepare documentation compliant with German Banking Act — not just Kraken's standard templates. This includes source-of-funds proof, transaction tracing, and any required BaFin-specific forms.
We submit through Kraken's compliance channels — not standard support. Our submission is in German-language correspondence with BaFin accelerates resolution; formal legal submission in German carries more weight and references BaFin guidelines. We also file a parallel complaint with BaFin if needed.
We verify everything works and advise on preventing recurrence on Kraken. If Kraken doesn't respond within no statutory maximum holding by exchanges, but BaFin expects resolution within 'reasonable time' — interpreted as 3 months, we escalate to BaFin and pursue cross-jurisdictional action in USA (Wyoming incorporation; HQ San Francisco) if needed.
Tell us what happened. A senior crypto compliance lawyer — not a chatbot, not a junior — will read your case and respond within 6 hours. Swiss professional secrecy applies from your first message.