Key Highlights
- Kraken received initial regulatory approval from Dubai’s VARA for broker-dealer, investment, and management activities.
- UAE users will gain access to Kraken’s global liquidity network and future AED funding support.
- The move builds on Kraken’s earlier regulatory presence in Abu Dhabi’s ADGM framework.
Payward, the parent company of the crypto exchange Kraken, has secured initial regulatory approval for obtaining licenses for broker-dealer, investment, and management activities from the Virtual Assets Regulatory Authority (VARA) in Dubai. This development marks a step for Kraken to enter the UAE market.
According to the official announcement, this license gives Kraken the capability to provide clients with trading services that include spot trading, margin trading, OTCs, staking, and access for institutions using Kraken Prime. In addition, users will have access to cryptocurrency transfers made using Krak.
The UAE-based traders will get direct access to Kraken’s global order book, which offers deep liquidity in leading markets around the world, including Europe, the US, and Asia-Pacific. They will also be able to deposit and withdraw in UAE dirhams (AED).
Arjun Sethi, Co-CEO of Payward and Kraken, wrote on the license approval that “Dubai wrote a rulebook for crypto before most jurisdictions even acknowledged the asset class.” 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.”
“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. The difference is the rulebook is written down and the supervisor is local. That is what a license should mean,” he added.
This move represents a strategic re-engagement with the UAE. Kraken had previously secured approvals in Abu Dhabi’s ADGM in 2022 for AED trading pairs in the region. The new VARA license in Dubai builds on that foundation, aligning with evolving regulatory frameworks that have positioned the emirate as a global crypto hub.
The platform notes that, for UAE-based customers, this implies instant access to the Buy, Trade, and Earn offerings from Kraken, which includes spot trading and staking. With time, other product lines like derivatives, lending, and investment will be added for qualified customers. Funding through the AED currency is slated for 2026, lowering costs for local participants even further.
Q1 report released by the firm
Recently Payward released its performance report in which it reported adjusted revenue of $507 million for Q1 2026. Payward achieved $357 billion in aggregate trading volume and managed to increase its spot market share to 5.2% from 3.5% and keep its maximum volume at 59%. Futures trading performance surged with Futures DARTs growing by 51%.
UAE’s efforts to become a crypto hub
The UAE has been actively trying to position itself as the hub of digital assets. VARA of Dubai and ADGM of Abu Dhabi have developed competing but complementary frameworks that bring in talent, investments, and infrastructural support. There has been a great deal of institutional interest, with the region being one of the most desired destinations for crypto-native companies and traditional finance institutions looking at tokenized assets.
Given the region’s favorable regulation regime and geographical position, the UAE is well-placed to attract substantial funds from Europe, Asia, and Africa.
Now that Kraken has obtained preliminary regulatory approval in Dubai, attention will be directed to user onboarding, team formation, and product development.
Also Read: Crypto PAC Launches 2026 Midterm Push as ‘Crypto Mom’ Hester Pierce Exits SEC
