Key Takeaways
Kraken secured preliminary VARA approval to expand crypto services in the UAE.Dubai’s crypto rules are attracting exchanges as global firms seek regulatory clarity.Kraken plans UAE staking, OTC, and derivatives services pending final approvals.
Payward Gains UAE Crypto License Approval as Kraken Deepens Middle East Push
Kraken is preparing to deepen its presence in the Middle East after securing preliminary approval from Dubai’s Virtual Asset Regulatory Authority (VARA), marking another milestone in the United Arab Emirates’ push to become a global center for digital assets.
Payward, the financial infrastructure company behind Kraken, said it received initial authorization for a broker-dealer, investment, and management license in Dubai. The approval clears the way for the exchange to offer a broad range of crypto services through a locally regulated entity.
The planned offering will include spot and margin trading, over-the-counter services, staking products, institutional access through Kraken Prime, and crypto transfers between users via its Krak payment system.
Clients in the UAE will also gain access to Kraken’s global trading infrastructure, including liquidity pools tied to major markets across the United States, Europe, and Asia-Pacific. Through a locally regulated subsidiary, users will be able to deposit and withdraw funds directly in UAE dirhams, streamlining access to global crypto markets.
“Dubai wrote a rulebook for crypto before most jurisdictions even acknowledged the asset class,” said Arjun Sethi, co-CEO of Payward and Kraken. “That clarity is why real liquidity and institutional capital now sit in the UAE.”
Sethi said operating under VARA’s framework allows Kraken to serve regional clients through a locally supervised structure rather than relying on offshore entities, an issue that has become increasingly important as regulators worldwide tighten oversight of digital asset platforms.
Kraken’s expansion is part of Payward’s broader strategy to establish regulated operations in major financial centers. Initially, Kraken plans to roll out its Buy, Trade, and Earn services in the country, subject to final regulatory approvals. Over time, the exchange intends to expand into derivatives, lending products, and additional investment services for qualified clients.
The move adds to a growing list of crypto firms choosing the UAE as a strategic base for regional and international operations. Dubai, in particular, has emerged as one of the industry’s most active regulatory jurisdictions after introducing dedicated crypto licensing frameworks years ahead of many Western markets.
Industry executives increasingly point to regulatory certainty as a key advantage for the UAE, as digital asset rules remain fragmented or politically contested in several major economies.
VARA has become central to that effort, positioning Dubai as a jurisdiction willing to accommodate crypto businesses while maintaining formal oversight standards. Kraken’s entry into Dubai further reinforces the UAE’s growing role in shaping the next phase of global crypto market infrastructure.
