Kraken has secured regulatory approval to expand its cryptocurrency services across the United Arab Emirates.
The development marks a new phase in the exchange’s efforts to establish a regional presence. The license opens access to digital asset services for individual and institutional investors. It also strengthens Kraken’s plans to introduce more trading and investment products in the UAE.
Kraken’s parent company, Payward, obtained a full crypto brokerage, management, and investment license from Dubai’s Virtual Assets Regulatory Authority (VARA). The approval follows preliminary authorization granted several months earlier.
The license allows Kraken to onboard retail and institutional clients under Dubai’s virtual asset regulatory framework. It also supports the exchange’s return to a market where its earlier expansion efforts faced setbacks.
Kraken first entered the UAE market through Abu Dhabi in 2022. However, the company later withdrew from that operation and reduced its regional presence.
The latest authorization marks a renewed expansion effort, with Kraken preparing services tailored to UAE investors.
Kraken expands UAE trading services with AED fiat pairs
Kraken plans to offer spot and margin trading products with trading pairs denominated in UAE dirhams. Customers will also be able to deposit and withdraw funds directly in AED.
These services will allow local investors to access cryptocurrency markets without relying exclusively on foreign currency funding.
Beyond trading, Kraken will introduce on-chain staking services, giving eligible customers access to supported blockchain staking opportunities.
The exchange will also provide access to xStocks, its tokenized stock offering, alongside Krak, its cryptocurrency transfer platform.
Meanwhile, institutional investors will gain access to additional services through Kraken’s over-the-counter trading desk and Kraken Prime.
These offerings will serve clients seeking institutional trading, liquidity access, and digital asset management services.
Arjun Sethi, co-CEO of Payward and Kraken, said UAE customers would access the exchange’s existing global trading infrastructure.
“From launch, clients in the UAE get the same order book and multi-asset coverage we run in every other market,” Sethi said.
He also highlighted Dubai’s regulatory framework as an important component of the company’s regional expansion strategy.
According to Sethi, Payward’s regulatory infrastructure connects UAE clients directly with Kraken’s liquidity and expanding digital asset offerings.
Kraken targets Crypto derivatives and yield products in the UAE
Kraken plans to expand its UAE product range beyond the services covered by its initial launch.
The company expects to introduce cryptocurrency derivatives and additional yield-generating products in late 2026 or early 2027.
However, Kraken said these future offerings will require approval from Dubai’s Virtual Assets Regulatory Authority before their introduction.
The planned expansion follows Kraken’s earlier attempt to establish a lasting presence in the Emirates.
Its 2022 Abu Dhabi entry ended with a withdrawal and a reduction in local operations.
Through Payward’s latest authorization, Kraken can now serve both retail and institutional customers within Dubai’s regulatory framework.
For now, the company will focus on spot trading, margin products, staking, tokenized stocks, and institutional services.
Kraken has not announced specific launch dates for its planned derivatives and additional yield products. Their availability will depend on subsequent regulatory approvals.
