Cryptocurrency exchange Kraken is set to expand into the United Arab Emirates after its parent company, Payward Inc., received preliminary approval on May 21 from Dubai’s Virtual Assets Regulatory Authority (VARA). The license allows the firm to offer a full suite of regulated crypto services in the emirate.
"Dubai wrote a rulebook for crypto before most jurisdictions even acknowledged the asset class," Arjun Sethi, Co-CEO of Payward and Kraken, said in the announcement. "That clarity is why real liquidity and institutional capital now sit in the UAE. Operating under VARA puts Kraken inside that perimeter, serving clients through a local, supervised entity rather than from offshore."
The approval allows Kraken to offer spot, margin, and over-the-counter (OTC) trading, as well as staking services. For institutional clients, the license provides access to Kraken Prime, a dedicated service for trading, custody, and OTC execution. The company plans to introduce dirham (AED) funding and withdrawal options later in 2026, which will provide a direct on-ramp for local capital into Kraken's global order books.
Kraken’s entry heats up an already competitive market for institutional crypto services in the UAE. The exchange will compete directly with major global players that are already licensed in Dubai, including Binance, OKX, and Crypto.com. According to VARA's public register, there are currently 49 active companies with crypto licenses in the emirate, spanning exchanges, brokerages, and custody providers. While Kraken previously held a license in Abu Dhabi's financial free zone since 2022, the new VARA approval provides access to the larger, crypto-specific regulatory environment governed by Dubai.
This article is for informational purposes only and does not constitute investment advice.
