Kraken has moved a step closer to launching regulated services in the United Arab Emirates after its parent company, Payward, received preliminary approval from Dubai’s Virtual Assets Regulatory Authority (VARA). The licence, granted on Thursday, May 21, covers broker-dealer, investment, and management activities, giving Payward a clear path to offering spot, margin, and OTC trading, staking, and institutional access through Kraken Prime once remaining conditions are met.
The approval does not set an immediate launch date, but Kraken plans to introduce UAE dirham (AED) funding and withdrawals later this year, reducing friction for traders who currently rely on foreign currency routes. Retail clients will be limited to services explicitly allowed under VARA’s retail-access framework, while institutional users can access deeper liquidity and execution tools via Kraken Prime. Co-CEO Arjun Sethi said the UAE clients will use the same global order books and balance sheet as other markets, with local supervision providing regulatory clarity.
Dubai’s rulebook continues attracting major crypto firms. VARA’s public register now lists licensed entities across exchange, broker-dealer, custody, and lending activities. The move also follows Kraken’s earlier Abu Dhabi free zone approval in 2022 and aligns with a broader UAE strategy. Payward separately agreed to acquire Hong Kong-based Reap Technologies for $600 million, reinforcing its stablecoin payments and Asian strategy. The Dubai licence, alongside US derivatives and national trust charter pursuits, underscores an exchange-wide push to build regulated operations in key financial hubs.
