Payward, the parent company of the cryptocurrency exchange and digital investment platform Kraken, has received preliminary approval for a comprehensive broker-dealer, investment, and management license from Dubai’s Virtual Assets Regulatory Authority (VARA). This milestone marks a significant step in digital assets platform Kraken’s strategy to establish a presence in the United Arab Emirates.
The authorization enables Payward’s local subsidiary to offer a suite of virtual asset services to both retail and professional clients in Dubai.
UAE-based users will soon gain access to spot trading, margin trading, over-the-counter (OTC) services, staking, peer-to-peer crypto transfers through Kraken’s internal system, and institutional offerings via Kraken Prime.
A standout feature is the ability to fund accounts and withdraw directly in UAE dirhams (AED), creating a seamless on-ramp to global crypto markets through a locally regulated entity.
This development connects UAE traders to Kraken’s established global order books, known for their depth and reliability across Europe, the United States, and Asia-Pacific regions.
By operating through a supervised local subsidiary, clients benefit from the same liquidity pools, execution standards, and multi-asset coverage available in other major markets, while adhering to VARA’s clear regulatory framework.
Arjun Sethi, Co-CEO of Payward and Kraken, highlighted Dubai’s forward-thinking approach: the emirate developed comprehensive rules for crypto well ahead of many other regions.
This regulatory clarity has attracted substantial liquidity and institutional capital to the UAE. Operating under VARA allows Kraken to serve clients from within this ecosystem rather than from offshore locations, reinforcing trust and compliance.
The move aligns with Kraken’s broader global expansion strategy, which focuses on building regulated, on-the-ground operations in key financial hubs.
By integrating new markets into its core network, the exchange aims to deliver consistent service quality, proper execution, and deep liquidity worldwide. Sethi emphasized that UAE clients will experience the identical infrastructure Kraken maintains elsewhere, with the added assurance of local oversight.
In the coming months, Kraken plans to roll out its Buy, Trade, and Earn products in the UAE, initially focusing on spot trading and staking, subject to final approvals.
Future expansions may include derivatives, lending, and additional investment options tailored for qualified investors. Services for retail clients will follow VARA’s specific guidelines on permitted offerings, which may differ from those available to professional clients. As with all cryptocurrency related activities, participants should remain aware of inherent market risks, including potential loss of capital.
Payward has committed to maintaining segregated client assets and meeting VARA’s capital requirements to properly safeguard customer interests. This authorization underscores the UAE’s role as a crypto hub and positions Kraken to capture opportunities in a market that values responsible innovation balanced with regulatory standards.