- Payward, Kraken’s parent company, has secured the UAE’s VARA authorization.
- Kraken can now deliver full-fledged services to clients in the United Arab Emirates.
- Payward aims to establish broader global growth through regulated on-ground operations.
Payward, the parent company and primary legal entity behind the cryptocurrency exchange Kraken, has secured the Virtual Asset Regulatory Authority (VARA) Authorization, allowing it to operate in the UAE.
In its latest announcement, the unified financial infrastructure platform confirmed its expansion into the region after being granted preliminary approval for a broker-dealer, investment, and management license from VARA.
A Regulatory Go-Ahead in the UAE
Notably, Kraken is one of the world’s long-standing and arguably most liquid cryptocurrency platforms. The VARA approval offers the crypto exchange regulatory go-ahead, enabling it to offer a full range of services in Dubai. According to Payward, Kraken can now offer spot, margin, and OTC trading, staking, and access to Kraken Prime for institutional clients within the UAE. It can also allow users to execute crypto transfers through Krak.
Payward stated that the latest development will allow UAE traders to access Kraken’s global order books, which are equipped with deep liquidity and reliable execution across major markets in Europe, the US, and APAC. Additionally, Payward’s clients will, through locally regulated subsidiaries, be able to fund and withdraw in dirhams (AED), the UAE’s local currency.
Related Article: Kraken Parent Payward to Buy Bitnomial in $550M U.S. Derivatives Push
Dubai is Ahead of Other Regions
According to Arjun Sethi, Co-CEO of Payward and Kraken, Dubai wrote a rulebook for crypto before most jurisdictions even acknowledged the asset class. Sethi stated that clarity is why real liquidity and institutional capital now sit in the UAE. He further noted that operating under VARA puts Kraken inside the UAE’s perimeter, serving clients through a local, supervised entity rather than from offshore.
It is worth noting that Payward is on a mission to establish broader global growth through regulated, on-the-ground operations in key financial centers. The firm’s strategy is to connect new markets to its core trading network, which would give Kraken’s clients access to premium execution, deep liquidity, and a consistent high standard of service worldwide.
Kraken to Provide Standard Services in the UAE
In the meantime, Sethi assured Kraken’s clients in the UAE that they will get the same order book, the same balance sheet, and the same multi-asset coverage we run in every other market. According to him, the difference is that the rulebook is written down and the supervisor is local.
Meanwhile, the latest move will allow Kraken to introduce its Buy, Trade, and Earn products to the UAE, offering direct access to spot trading and staking, subject to regulatory approval. The exchange also plans to expand its offering in the future to include derivatives, lending, and new investment products for qualified clients.
Related Article: Kraken Parent Payward Pushes for US Crypto Bank Charter
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