Kraken has re-entered the UAE market after Payward, its parent company, secured in-principle approval from Dubai’s Virtual Asset Regulatory Authority for a new regulated crypto offering.
The preliminary license covers crypto broker services, investment activities, and management services through a local entity.
The move brings Kraken back to the region after it previously closed its UAE office and dissolved an earlier Abu Dhabi Global Market license.
Kraken Returns Through Dubai Regulation
Payward said the approval allows Kraken to prepare a wider service rollout in Dubai under VARA supervision. The planned services include spot trading, margin trading, OTC trading, staking, user crypto transfers, and Kraken Prime access for institutional clients.
The company said customers in the UAE will gain access to the same order book, balance sheet, and multi-asset coverage available across Europe, the United States, and the Asia Pacific. Through Payward’s locally regulated subsidiary, users will also be able to use the UAE dirham for on-ramping and off-ramping.
Arjun Sethi, co-CEO of Payward and Kraken, said Dubai’s clear approach to virtual asset rules has helped position the UAE as a center for liquidity and institutional capital. He said VARA’s framework allows Kraken to serve clients through a local supervised business instead of relying on offshore access.
Services Planned For UAE Clients
Kraken plans to introduce its Buy, Trade, and Earn products in the UAE, subject to final regulatory approvals. These services will give users direct access to spot markets and staking under the local rulebook.
The company also plans to expand its offering over time with derivatives, lending, and new investment products for qualified clients. Institutional users are expected to receive access to Kraken Prime, which supports larger trading and portfolio management needs.
Payward described the Dubai move as part of a wider global strategy focused on regulated operations in major financial centers. The company said local oversight remains central to its expansion model as crypto firms face stronger compliance demands worldwide.
UAE Market Draws Global Exchanges
Kraken now joins other international crypto exchanges competing in the UAE and wider MENA market, including Binance, OKX, and Crypto.com. The region has attracted major platforms because regulators have built dedicated virtual asset frameworks and licensing routes.
The move also marks a return after Kraken reduced its regional footprint in 2023. The exchange had earlier received a Financial Services Permission license from ADGM in Abu Dhabi to operate a regulated virtual asset exchange for MENA clients.
Kraken later closed offices in San Francisco, Japan, and the UAE during a broader restructuring. Its new Dubai approval signals a renewed push into the Middle East through VARA’s regulatory system and a locally supervised subsidiary. This approach aligns with its current compliance-led expansion plan across global markets.
