Kraken is expanding deeper into the United Arab Emirates after securing preliminary approval from Dubai’s Virtual Assets Regulatory Authority, allowing the crypto exchange to move closer to a full launch in the region.
Key Takeaways
- Kraken received preliminary approval from Dubai’s VARA regulator through its parent company Payward.
- The exchange plans to offer spot trading, margin trading, OTC services, staking, and institutional products in the UAE.
- Dubai now hosts 49 active crypto firms as the emirate continues positioning itself as a global digital asset hub.
- Kraken’s expansion comes as institutional demand for regulated crypto infrastructure continues rising worldwide.
What Happened?
Crypto exchange Kraken announced that its parent company, Payward, secured preliminary regulatory approval from Dubai’s Virtual Assets Regulatory Authority (VARA) to operate in the emirate. The approval moves Kraken closer to launching a full suite of crypto services for retail and institutional investors in the United Arab Emirates.
The company said UAE users will gain access to Kraken’s global liquidity network, institutional trading infrastructure, and AED funding capabilities through its locally regulated entity, Payward FZCO.
LATEST: 🇦🇪 Kraken parent Payward has secured preliminary VARA approval to operate in Dubai, paving the way for a UAE expansion. pic.twitter.com/JOhoD36ukD
— CoinMarketCap (@CoinMarketCap) May 21, 2026
Dubai Continues Building Its Crypto Hub Reputation
Dubai has become one of the most active crypto regulatory jurisdictions in the world since launching VARA in 2022. The regulator was created specifically to oversee digital asset businesses and establish a clear legal framework for crypto firms operating in the region.
The city’s public VARA register currently includes 49 active crypto companies spanning exchange services, custody, broker dealer operations, and lending platforms. Major crypto firms including Binance, Crypto.com, OKX, Deribit, and HashKey have already secured approvals under Dubai’s regulatory framework.
Kraken’s approval adds another major global exchange to that growing list.
According to Kraken, the company plans to offer several services at launch, including:
- Spot trading
- Margin trading
- Over the counter trading
- Staking services
- Crypto transfers
- Institutional access through Kraken Prime
Users in the UAE will also be able to deposit and withdraw funds in UAE dirhams using local banking rails connected through Payward FZCO.
A Kraken spokesperson said the official launch date has not yet been confirmed.
Kraken Highlights Regulatory Clarity in UAE
Kraken executives emphasized Dubai’s regulatory clarity as one of the main reasons for expanding operations in the region.
Payward and Kraken Co CEO Arjun Sethi said:
Sethi also noted that Kraken’s UAE clients will receive access to the same infrastructure and liquidity available across the company’s global operations in Europe, the United States, and Asia Pacific markets.
“Clients in the UAE get the same order book, the same balance sheet, and the same multi asset coverage we run in every other market,” Sethi said. “The difference is that the rulebook is written down and the supervisor is local.”
The approval comes at a time when many crypto firms are searching for jurisdictions with clear operating guidelines as regulatory uncertainty continues in several major global markets.
UAE Emerges as Institutional Crypto Destination
Industry leaders increasingly view the UAE as a preferred destination for crypto and blockchain companies due to its structured licensing process and supportive approach toward digital assets.
Recent approvals granted by VARA include Ripple’s RLUSD stablecoin authorization and licensing for blockchain gaming firm Animoca Brands. At the same time, regulators have also demonstrated enforcement authority by ordering KuCoin earlier this year to stop serving Dubai residents without proper authorization.
Kraken itself already has experience operating within the UAE after receiving approval in Abu Dhabi back in 2022 under the capital’s financial free zone framework.
The company now appears to be strengthening its regional strategy as institutional demand for regulated crypto infrastructure continues growing worldwide.
Kraken also recently filed for a potential US IPO after reportedly raising $800 million at a $20 billion valuation. Separately, Payward submitted an application for a national trust bank charter with the US Office of the Comptroller of the Currency.
CoinLaw’s Takeaway
In my experience, the biggest challenge for crypto companies has never been technology. It has been regulation. What Dubai has done differently is create a framework that gives crypto firms clear rules before problems arise. I found Kraken’s expansion important because it shows large exchanges are increasingly prioritizing jurisdictions that offer legal certainty and long term stability.
The UAE is no longer just experimenting with crypto adoption. It is actively positioning itself as one of the world’s most serious digital asset hubs. If this trend continues, more institutional players could shift operations toward regions like Dubai where compliance pathways are already clearly defined.
