Kraken's parent company Payward has secured preliminary regulatory approval from Dubai's Virtual Assets Regulatory Authority (VARA) to expand into the United Arab Emirates. The green light lets the exchange launch crypto trading and staking services in the UAE, a move that strengthens Dubai's push to become a global crypto hub. Major exchanges have been gravitating toward jurisdictions with clearer digital asset rules, and this approval puts Kraken in the game.
What the VARA approval covers
The preliminary nod from VARA isn't a full license — it's the first step. Kraken will still need to meet the regulator's conditions before going live. Once cleared, the exchange can offer both spot trading and staking to UAE clients. Staking, which lets users earn yields on their crypto, has become a key service for exchanges vying for retail and institutional business.
Why Dubai
Dubai has been aggressively courting crypto firms with a tailored regulatory framework through VARA. The emirate wants to position itself as a hub for blockchain and digital assets, competing with Singapore, Hong Kong, and the EU. For Kraken, the UAE offers a growing base of crypto-savvy users and a clear set of rules — something the company has flagged as critical for expansion. Other exchanges, including Binance and Coinbase, have also sought licenses in Dubai.
Payward now moves to final authorization. The company hasn't shared a timeline for launch, but preliminary approvals typically take months to convert to full licenses. Kraken will also need to set up local operations, comply with anti-money laundering rules, and integrate with UAE payment systems. For now, the exchange is one step closer to offering services in a market that's hungry for regulated crypto options.
