Kraken allows users to create a masterkey that is just a password. Wouldn't creating a password to bypass 2FA completely negate 2FA?


Yes. Your right.

A lot of 2FA/U2F enabled websites/webservices have such "recovery" methods. 2FA/U2F only works in the right way when you can't recover your login credentials if your second factor has been lost/not-available.

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