Kraken nears UAE launch after Dubai VARA approval

Kraken has moved closer to launching in the United Arab Emirates after its parent company, Payward, received preliminary approval from Dubai’s Virtual Assets Regulatory Authority.

Payward received preliminary approval for a broker-dealer, investment and management licence from VARA. The approval gives Kraken a path toward offering regulated crypto services in Dubai once the remaining requirements are completed.

The approval was granted on Thursday, May 21, moving Kraken closer to a full UAE rollout. The exchange has not confirmed a launch date, but plans to offer UAE dirham funding, margin trading, OTC trading and Kraken Prime access for institutional clients.

Kraken plans AED funding and institutional access

The planned launch would give UAE users direct crypto market access through local currency rails. AED funding and withdrawals could reduce friction for traders who currently rely on foreign currency routes or third-party payment channels.

Kraken also plans to offer institutional clients access to Kraken Prime. The service targets funds, trading firms and professional market participants that need deeper liquidity, execution tools and post-trade support.

Dubai keeps building a crypto hub

Kraken’s move follows earlier regional work. The exchange received approval in 2022 to operate under Abu Dhabi’s financial free zone framework, making the latest Dubai approval part of a broader UAE strategy.

Dubai’s public VARA register includes licensed crypto firms across exchange, broker-dealer, custody and lending activities. VARA says it regulates virtual asset services in and from Dubai, except in the Dubai International Financial Centre.

Payward and Kraken co-CEO Arjun Sethi framed Dubai’s rulebook as a reason for the move. He said that regulatory clarity has helped bring liquidity and institutional capital to the UAE.

“Dubai wrote a rulebook for crypto before most jurisdictions even acknowledged the asset class,” he said.

Wider UAE push

Related crypto.news coverage shows Dubai has continued to expand regulated crypto payments and market access. Crypto.com recently received a UAE Stored Value Facilities license, allowing Dubai government fee payments through its regulated platform, with settlement in dirhams or approved stablecoins.

Another crypto.news report said VARA issued guidance on token issuance in Dubai. The guidance clarified how virtual assets should be structured, disclosed and distributed, including rules for stablecoins and asset-referenced tokens.

Kraken has also been expanding outside the UAE. Related coverage said Payward agreed to acquire Hong Kong-based Reap Technologies for $600 million, strengthening Kraken’s stablecoin payments and Asia strategy.

The Dubai approval now gives Kraken another regulated growth path. The company is targeting local funding, professional trading tools and institutional access in one of the most active crypto markets in the Middle East.