Kraken Secures Full Dubai License, Poised for UAE Market Entry
Cryptocurrency exchange Kraken is set to launch its services in the United Arab Emirates following the acquisition of full market approval from Dubai’s Virtual Asset Regulatory Authority (VARA). This landmark decision permits Kraken’s parent company, Payward, to operate as a licensed virtual asset service provider within Dubai, catering to retail, professional, and institutional investors across the region.
Initial Offerings and Future Expansion
Upon launch, customers in the UAE will gain access to spot and margin trading, with trading pairs denominated in the UAE dirham (AED). A significant enhancement for users will be the ability to directly deposit and withdraw funds in dirhams, potentially eliminating the need to convert other currencies for trading activities.
The initial service lineup will also encompass on-chain staking, xStocks, and Kraken’s crypto transfer service, Krak. Institutional clients can expect access to over-the-counter (OTC) spot trading and Kraken Prime. The company has indicated plans to progressively introduce additional products, with crypto derivatives and a broader spectrum of yield opportunities anticipated for release in late 2026 and into 2027, subject to further regulatory clearances. Furthermore, Payward intends to extend its trading infrastructure to regional partners through an embedded “trading-as-a-service” model.
Regulatory Milestone and Global Footprint
This latest approval represents the final phase of VARA’s licensing process. It follows a preliminary approval granted to Payward in May 2026, which enabled the company to finalize its operational setup before onboarding customers. Payward currently holds over 100 licenses and registrations globally, with a regulatory presence spanning Europe, the Americas, Asia-Pacific, and the Middle East.
Arjun Sethi, Co-CEO of Payward and Kraken, commented on the development, stating, “From launch, clients in the UAE get the same order book and multi-asset coverage we run in every other market, under one of the clearest regulatory frameworks in the world. Payward’s regulatory infrastructure now connects them directly to Kraken’s market-leading liquidity, along with a growing range of opportunities across digital assets.”
A Busy Year for Kraken
Kraken has experienced a dynamic year. In April, Deutsche Börse invested $200 million in the crypto exchange. In June, Kraken partnered with Maple to introduce institutional-grade lending protections on the blockchain via a facility for digital asset-backed loans. More recently, in September, Nasdaq agreed to invest an additional $100 million in Payward, valuing the parent company at $21 billion. The two entities are also collaborating on tokenized stocks, with a targeted launch for the second quarter of 2027.
