The authorization permits Kraken to offer virtual asset services to both retail and professional investors in Dubai, according to a company announcement. The exchange will provide United Arab Emirates clients with spot and margin trading, over-the-counter services, staking, crypto transfers, and access to its institutional platform Kraken Prime.
UAE traders will connect to Kraken's global order books across Europe, the United States, and Asia-Pacific markets. Customers can fund accounts and make withdrawals in dirhams through Payward FZCO, the locally regulated subsidiary.
The company plans to expand its Dubai offering to include derivatives, lending, and new investment products for qualified clients.
“Dubai wrote a rulebook for crypto before most jurisdictions even acknowledged the asset class,” said Payward and Kraken Co-CEO Arjun Sethi, in a statement. “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.”
The executive contrasted Dubai's framework with other markets.
"Clients in the UAE get the same order book, the same balance sheet, and the same multi-asset coverage we run in every other market," Sethi said. "The difference is that the rulebook is written down and the supervisor is local."
Dubai established VARA in 2022 to regulate digital asset businesses, creating one of the world's most comprehensive crypto frameworks. The authority has since licensed major exchanges including Binance, Crypto.com, and OKX as the emirate builds its position as a Middle Eastern crypto hub.
VARA's licensing categories cover trading, custody, and advisory services. The framework has attracted firms seeking regulatory clarity amid uncertainty in other jurisdictions, with institutional players particularly drawn to the defined operational requirements.
