Payward Secures VARA Preliminary Approval, Enabling Kraken to Expand UAE Presence

Payward, Kraken’s parent company, has secured preliminary approval from the VARA for a broker-dealer, investment, and management license in the United Arab Emirates.

The authorization marks a key regulatory milestone for Kraken’s regional expansion strategy, enabling the group to build a locally regulated presence in Dubai’s rapidly evolving virtual asset ecosystem.

Kraken Expands UAE Offering With Full Trading Suite

Following regulatory approval, Kraken plans to offer UAE clients a full range of crypto services, including spot trading, margin trading, OTC execution, staking, and institutional access via Kraken Prime.

The platform will also introduce crypto transfers between users through Krak, expanding its consumer-facing product ecosystem under a regulated framework.

AED On-Ramps and Local Market Integration

A key component of the expansion is the introduction of UAE dirham (AED) funding and withdrawal capabilities through a regulated local Payward subsidiary.

This will allow clients to directly fund accounts in fiat currency and access crypto markets without relying on offshore intermediaries, improving settlement efficiency and regulatory alignment.

In addition, UAE users will gain access to local trading pairs and Kraken’s global orderbooks, which aggregate liquidity across Europe, the United States, and Asia-Pacific markets.

Global Liquidity Access Through Regulated Infrastructure

Kraken’s UAE rollout is structured to integrate local clients directly into its international trading infrastructure.

This includes access to deep liquidity pools and consistent execution quality across global markets, while operating under Dubai’s VARA supervision framework.

The model reflects a broader industry shift toward combining local regulatory compliance with global liquidity networks.

Regulatory Clarity

Arjun Sethi, Co-CEO of Payward and Kraken, highlighted Dubai’s early leadership in establishing a formal crypto regulatory framework.

He noted that VARA’s structure enables firms to operate under clear, locally supervised rules rather than offshore models, improving institutional confidence in the region.

Sethi added that UAE clients will receive the same liquidity access, balance sheet exposure, and multi-asset coverage as other markets, with the distinction being direct regulatory oversight within the UAE.

Expansion Roadmap

Kraken plans to introduce its Buy, Trade and Earn suite in the UAE following final regulatory approvals, marking the next phase of its retail and institutional rollout in the region.

Beyond its initial product launch, the exchange aims to expand its regulated offering to include derivatives, lending services, and additional investment products for qualified clients, further strengthening its institutional footprint in the Middle East.

The UAE expansion also aligns with Kraken’s broader shift toward capital markets infrastructure, including its collaboration with Nasdaq on tokenized equity systems, reflecting a strategic move beyond traditional crypto exchange services toward regulated on-chain financial markets.

This trajectory builds on Kraken’s wider regulated finance strategy, following earlier milestones such as Kraken Financial’s access to the U.S. Federal Reserve payment system through a limited-purpose master account, reinforcing its position at the intersection of crypto infrastructure and traditional financial rails.