Kraken wins preliminary VARA approval, advances UAE launch
Payward, Kraken’s operator, received preliminary VARA approval for broker-dealer, investment and management licenses, moving Kraken toward a UAE launch with AED funding and institutional services.
Payward, the operator of cryptocurrency exchange Kraken, received preliminary approval from Dubai’s Virtual Assets Regulatory Authority for broker-dealer, investment and management licenses, the company confirmed Thursday. The approvals bring Kraken closer to operating in the United Arab Emirates.
Kraken plans to accept UAE dirham (AED) deposits at launch and offer retail and institutional products, including margin trading, an over-the-counter desk and access to Kraken Prime for institutional clients. The company has not set a full launch date.
Payward previously received approval in 2022 to operate under Abu Dhabi’s financial free zone framework. The new VARA approvals expand its regulatory presence in the UAE.
VARA’s public register lists 49 active virtual asset companies providing services such as exchanges, broker-dealer operations, custody and lending. Payward and Kraken do not yet appear on the register.
The register includes international firms such as Binance, Crypto.com, OKX, Deribit and HashKey. The most recent addition before Payward’s announcement was CoinCorner, which received approval for virtual asset broker-dealer services on May 5.
Arjun Sethi, Payward and Kraken co-CEO, wrote in the company announcement: “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.”
Industry executives have pointed to regulatory clarity as a factor for expanding operations in the UAE. Recent Iran-linked regional tensions have unsettled some investors and disrupted events across the Gulf.
The company will confirm a full launch date after completing remaining regulatory and operational steps.
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