Why is Kraken expanding into the UAE?

Kraken is expanding into the UAE after parent company Payward received preliminary approval from Dubai’s VARA regulator. The move gives Kraken access to one of the fastest-growing regulated crypto markets in the Middle East.

What approval did Kraken receive from Dubai regulators?

Payward received preliminary approval for broker-dealer, investment and management licences from Dubai’s Virtual Assets Regulatory Authority. This approval is an early regulatory step before Kraken can fully launch services in the UAE.

What crypto services will Kraken offer in the UAE?

Kraken plans to launch UAE dirham funding, margin trading, over-the-counter trading and institutional services through Kraken Prime. These offerings target both retail traders and larger institutional investors entering the regional crypto market.

Why does Dubai matter for crypto exchanges like Kraken?

Dubai has become a major crypto hub because regulators introduced a dedicated crypto framework earlier than many countries. Companies view the UAE as more predictable and business-friendly compared with jurisdictions where crypto rules remain unclear.

How many crypto firms are currently regulated by Dubai’s VARA?

Dubai’s VARA register currently lists 49 active crypto companies across exchanges, custody providers and lending platforms. Major firms already operating there include Binance, Crypto.com, OKX and Deribit.

Is Kraken already operating in the UAE?

Kraken already had regulatory approval under Abu Dhabi’s financial free zone framework since 2022. The new Dubai approval expands its presence deeper into the UAE’s broader crypto ecosystem.

What does Kraken Prime mean for institutional investors in the UAE?

Kraken Prime is Kraken’s institutional trading and custody platform designed for hedge funds, family offices and professional investors. Its launch in the UAE could attract more institutional crypto capital into the region.

How could this expansion affect Kraken’s long-term growth?

Expanding into regulated international markets helps Kraken diversify beyond the US and Europe. The UAE could become an important regional revenue hub as Middle Eastern governments and investors increase exposure to digital assets.

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Kraken nears UAE launch after Dubai approval

Written by Jon CuthbertPublished May 21, 2026, 11:55 PM

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.

Payward said the approval covered a broker-dealer, investment and management licence, with Kraken planning to launch services including UAE dirham funding, margin trading, over-the-counter trading and institutional access through Kraken Prime.

A Kraken spokesperson said the preliminary approval was granted on Thursday, while the company’s full launch date in the UAE has yet to be confirmed.

“Dubai wrote a rulebook for crypto before most jurisdictions even acknowledged the asset class,”

Said Payward and Kraken co-CEO, Arjun Sethi.

“That clarity is why real liquidity and institutional capital now sit in the UAE,”

Sethi added.

Dubai’s public VARA register currently lists 49 active crypto companies, including major exchanges such as Binance, Crypto.com, OKX and Deribit, reflecting the emirate’s growing role as a regional digital asset hub.

Kraken’s expansion also builds on its existing regulatory presence in the UAE after securing approval to operate under Abu Dhabi’s financial free zone framework in 2022, as crypto firms increasingly cite regulatory clarity as a key reason for establishing operations in the country despite recent regional geopolitical tensions.