Cryptodubai

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

Dubai Government introduced a new initiative allowing cryptocurrency payments for government fees as the emirate accelerates efforts to expand blockchain adoption and digital financial infrastructure.

Daman Virtual co-founder Ahmed Ismail said institutional adoption of digital assets in the UAE remains constrained by banking friction, custody concerns and operational readiness despite Dubai’s growing reputation as a regulated crypto hub.

Sean McHugh, head of market assurance at VARA, joins Scarlet Fu and Tim Stenovec on "Bloomberg Crypto." VARA, Virtual Assets Regulatory Authority, is responsible for regulating, supervising, and overseeing virtual assets and related activities across all commercial zones in the Emirate of Dubai, excluding the Dubai International Financial Centre.

Dubai has long been considered a safe haven in the Middle East. But Iran's unprecedented strikes against US allies across the region have put that model to the test.

The oil market has been roiled by the Iran war, with prices swinging wildly. For regions most dependent on Gulf exports, the strain is already apparent, with wider, global implications on the horizon.

Dubai International Airport briefly halted operations on Wednesday after drones smashed down at the facility, resulting in four injuries at the world's busiest international hub. The widening war with Iran continues to disrupt travel with more than 46,000 flight cancellations across the region since the conflict began on Feb. 28. Bloomberg's Leen Al-Rashdan reports.

The US-Israeli attacks on Iran have triggered a regional crisis and sent energy prices skyward. In the US, President Donald Trump's decision to go to war also could hurt his party in an election year.