Kraken Nears UAE Launch After Preliminary Dubai VARA Approval

TLDR

• Kraken moved closer to launching in the United Arab Emirates after Payward received preliminary approval from Dubai’s VARA.
• The preliminary approval covers a broker-dealer, investment, and management licence for Kraken’s Dubai plans.
• Kraken said it plans to offer AED funding, margin trading, over-the-counter services, and Kraken Prime at launch.
• The company’s latest step in Dubai builds on its earlier 2022 approval in Abu Dhabi.
• Dubai’s public VARA register currently lists 49 active virtual asset companies across several service categories.

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

The company said the approval covers a broker-dealer, investment, and management licence for its Dubai plans.

Kraken said it plans to offer AED funding, margin trading, over-the-counter services, and Kraken Prime for institutions at launch.

Kraken Advances UAE Plans with Dubai Approval

Payward announced the Dubai step on Thursday as it outlined its latest expansion in the UAE. The company linked the move directly to preliminary approval from VARA.

The approval does not yet place Kraken on Dubai’s public VARA register. That register currently lists 49 active firms across exchange, custody, lending, and broker-dealer services.

Kraken and parent company Payward were absent from the register at the time of the announcement. The latest listed entrant was CoinCorner, approved on May 5 for virtual asset broker-dealer services.

Kraken said its planned local offering will include funding in UAE dirhams. The company also said clients will get access to margin and over-the-counter trading.

The exchange added that institutional customers will be able to use Kraken Prime. That product targets larger clients seeking execution and other market services.

The Dubai step follows Kraken’s earlier foothold in the country. In 2022, the exchange received approval to operate in the UAE through Abu Dhabi’s financial free zone.

Dubai’s Crypto Regulation Attracts Global Exchanges

Dubai’s VARA register shows several global crypto firms already active in the market. Those companies include Binance, Crypto.com, OKX, Deribit, and HashKey.

The list covers firms working across different parts of the digital asset business. These include exchange services, custody, lending, and broker-dealer operations.

The latest expansion comes as the UAE continues to draw crypto companies seeking clearer rules. Industry executives have pointed to rule clarity as a key factor behind that trend.

Payward and Kraken co-CEO Arjun Sethi praised Dubai’s regulatory approach in the company statement. He said Dubai created a crypto rulebook before many jurisdictions recognized the asset class.

The UAE’s crypto push has continued even as Iran-linked regional tensions affected sentiment and events across the Gulf. Still, Kraken’s latest update centered on its Dubai approval and planned services.

For now, Kraken remains outside VARA’s public register despite the company’s announcement. The most recent public update on the register remains CoinCorner’s May 5 approval.

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