Kraken Expands UAE Presence After VARA Approval as Dubai Strengthens Position Among World’s Fastest-Growing Regulated Crypto Markets with Rising Institutional Demand, AED Trading Access, and Broader Digital Asset Adoption Across the Middle East Region
Crypto exchange Kraken is growing its Middle East footprint following the preliminary regulatory approval from Dubai’s Virtual Asset Regulatory Authority (VARA) for its parent company Payward Inc. This approval is another notable milestone in Dubai’s role towards becoming one of the world’s fastest-growing regulated crypto hubs.
The approval paves the way for Kraken to proceed with the launch of regulated cryptocurrency services for both retail and institutional investors in the UAE via a local subsidiary’s supervision. After receiving approval, Kraken will launch AED-based crypto services and broader trading access for users in the region.
UAE Users to Access Local Crypto Services
Kraken Prime will offer spot, margin, OTC trading, staking, and institutional trading services to UAE-based clients, according to Kraken.
The exchange also intends to facilitate direct deposits and withdrawals in the UAE dirhams (AED) using its local subsidiary Payward, which operates in accordance with the UAE’s laws and regulations. This would enable users in the Emirates to be on a direct connection with Kraken’s liquidity network globally, across Europe, USA and Asia-Pacific.
Additional investment products, crypto lending, and derivatives products are expected to be offered in subsequent phases, which will require further regulatory approvals.
Dubai Continues Strengthening Its Crypto Leadership
In 2022, Dubai launched VARA, a dedicated regulator for virtual assets, making it one of the first jurisdictions around the globe to have a regulatory framework solely for virtual assets. The regulator has since licensed several big exchanges such as Binance, OKX and Bybit.
According to industry reports, the UAE’s digital asset sector has witnessed rapid institutional growth as global crypto firms increasingly seek regulated operating bases outside traditional markets.
Payward and Kraken’s Co-CEO Arjun Sethi said, “Dubai wrote a rulebook for crypto before most jurisdictions even acknowledged the asset class. That clarity is why real liquidity and institutional capital now sit in the UAE. Operating under VARA puts Kraken inside that perimeter, serving clients through a local, supervised entity rather than from offshore.”
Also Read: How Crypto Exchanges Work: Buying, Selling, and Trading Explained
Crypto Regulation and Institutional Expansion Continue
The UAE expansion aligns with Kraken’s broader strategy to have regulated activity in key global financial centres, the company said. The exchange’s goal is to provide uniform liquidity, execution, and product access to international markets while adhering to local regulations.
UAE users will have access to the same global order books, balance sheets, and multi-asset coverage as all of Kraken’s other leading markets, per company statements.
The move also signals increased competition among the major crypto exchanges to acquire a license from regulators, where governments are tightening oversight on crypto assets, investors, and crypto compliance procedures globally.
Disclaimer : Crypto News India does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
