Crypto exchange Kraken is expanding deeper into the Middle East after its parent company, Payward, secured preliminary regulatory approval from Dubai’s Virtual Assets Regulatory Authority (VARA) to operate digital asset services in the United Arab Emirates.
The approval gives Kraken a pathway to launch a broad range of regulated crypto products in Dubai, including spot trading, margin trading, OTC services, staking, and institutional infrastructure through Kraken Prime. UAE users will also gain access to crypto transfers between users through Kraken’s Krak service, while local dirham funding and withdrawals will be supported through Payward’s regulated regional entity.
The move marks another major step in Dubai’s push to position itself as one of the world’s leading regulated crypto hubs, attracting some of the largest global exchanges and digital asset firms.
“Dubai wrote a rulebook for crypto before most jurisdictions even acknowledged the asset class.”
That statement from Payward and Kraken Co CEO Arjun Sethi reflects a growing industry sentiment that regulatory clarity has become one of the most valuable assets for crypto firms navigating global expansion.
Key Takeaway
- Kraken secured preliminary approval from Dubai’s VARA to expand regulated crypto services in the UAE.
- UAE users will gain access to spot trading, staking, OTC services, Kraken Prime, and AED funding support.
- Dubai continues strengthening its position as a global crypto hub alongside firms like Binance, OKX, and Crypto.com.
- Kraken’s expansion reflects the growing importance of regulatory clarity for global crypto companies.
- The move is part of Kraken’s broader strategy to build licensed crypto infrastructure across key international markets.
Kraken strengthens Middle East presence
The VARA approval allows Kraken to operate under a locally supervised structure rather than serving regional clients from offshore jurisdictions. According to the company, UAE traders will gain access to the same liquidity pools, balance sheet infrastructure, and trading systems available to Kraken users across Europe, the United States, and Asia-Pacific markets.
Clients in the UAE will be able to trade directly using AED through Payward’s Dubai regulated subsidiary, simplifying access to crypto markets for local participants.
Kraken said the launch forms part of a wider strategy focused on building licensed operations inside major financial centers instead of relying on loosely regulated offshore models. The company plans to initially offer Buy, Trade, and Earn services, including spot trading and staking, with additional products such as derivatives, lending, and structured investment offerings expected to roll out over time for qualified users.
Dubai continues attracting major crypto firms
Kraken’s approval places the exchange among a growing list of major crypto companies establishing regulated operations under Dubai’s VARA framework.
Binance, OKX, Crypto.com, Deribit, and HashKey are among the international firms already operating within the emirate’s digital asset ecosystem. Dubai’s regulatory approach has increasingly differentiated itself from jurisdictions where crypto rules remain fragmented or uncertain.
VARA was established specifically to oversee virtual asset activities across Dubai and has since become one of the most recognized crypto regulatory bodies globally. The regulator currently supervises dozens of licensed firms across exchange, custody, lending, broker dealer, and investment categories.
Industry executives have repeatedly pointed to the UAE’s transparent licensing process and institutional-friendly framework as key reasons global firms continue choosing the region for expansion.
Kraken returns after earlier UAE restructuring
The latest approval also represents a notable return for Kraken in the UAE market. The exchange previously secured authorization in Abu Dhabi through the Abu Dhabi Global Market framework in 2022, becoming one of the first global exchanges licensed to offer regulated virtual asset trading services in the region. However, Kraken later closed several international offices in 2023, including operations tied to the UAE expansion.
Its new Dubai focused strategy signals a renewed commitment to the region as crypto adoption and institutional interest continue growing across the Middle East and North Africa.
Kraken’s re entry comes during a period where the UAE is rapidly becoming a strategic base for crypto native firms, venture capital funds, tokenization companies, and blockchain infrastructure providers.
Expansion comes amid broader global growth push
The UAE approval arrives alongside a wider expansion strategy underway at Payward.
Kraken has recently increased its focus on regulated infrastructure across multiple jurisdictions. Earlier this year, the company introduced CFTC-regulated crypto spot margin trading in the United States after acquiring derivatives platform Bitnomial.
Payward has also pursued additional licensing pathways in the US financial system while expanding further into Asia through acquisitions and infrastructure investments. The company recently agreed to acquire Hong Kong based stablecoin payments firm Reap Technologies in a deal reportedly valued at approximately $600 million. That transaction marked Kraken’s first major infrastructure expansion in Asia and further highlighted its ambitions beyond operating solely as a crypto exchange.
Instead, the company increasingly appears focused on becoming a broader digital financial infrastructure provider operating across regulated markets globally.
Revenue growth and rising compliance costs
Payward’s latest financial report showed adjusted revenue of roughly $507 million during the first quarter of 2026, alongside trading volumes surpassing $357 billion.
The company also reported growth in spot market share and futures trading activity, although profitability declined sharply compared to the previous year as operational and compliance expenses increased.
That trend reflects a broader shift happening across the crypto industry as exchanges invest heavily in licensing, acquisitions, compliance systems, and regulated infrastructure.
For firms like Kraken, securing licenses in regions such as Dubai may not produce immediate revenue spikes, but it strengthens long-term positioning as institutional crypto adoption accelerates globally.
UAE solidifies position as crypto hub
Dubai and Abu Dhabi continue competing to attract digital asset businesses through dedicated regulatory frameworks designed specifically for virtual asset markets.
The UAE’s combination of clear regulations, international capital access, and geographic connectivity between Europe, Asia, and Africa has helped transform the country into one of crypto’s fastest-growing operational centers.
Kraken’s latest approval adds further momentum to that trend.
As global exchanges continue searching for stable regulatory environments, Dubai’s crypto framework is increasingly becoming one of the most influential models shaping how regulated digital asset markets may operate in the years ahead.
