Kraken Expands UAE Presence with Key Crypto Licence from Dubai VARA

Payward, the unified financial infrastructure platform behind Kraken, has secured authorisation from Dubai’s Virtual Assets Regulatory Authority (VARA), clearing the way for the crypto giant to deepen its footprint in the UAE. The approval covers a broker-dealer, investment and management licence, giving Kraken the regulatory backing to roll out a broad suite of services in the emirate.

For the UAE’s fast-growing crypto community, this is more than just another licence announcement. It means access to spot, margin and OTC trading, staking services, institutional-grade offerings through Kraken Prime, and crypto transfers between users via the Krak app. In short, the full package many global traders already use, now under local supervision.

One detail that stands out is the ability for clients to fund and withdraw directly in dirhams (AED) through a locally regulated Payward subsidiary. Anyone who has tried to juggle cross-border transfers knows it can be a bit of a faff. Direct AED rails could remove that friction and, as many founders in our Arageek community often say, make the on-ramp to global markets far more straightforward.

UAE traders will also tap into Kraken’s global order books, which the company says provide deep liquidity across Europe, the US and APAC markets. That global connectivity, paired with local regulatory oversight, seems to be the key play here. Arjun Sethi, Co-CEO of Payward and Kraken, noted that Dubai created a crypto rulebook early on, before many jurisdictions had even formally recognised digital assets. According to him, that regulatory clarity has attracted real liquidity and institutional capital to the UAE, and operating under VARA allows Kraken to serve clients through a local supervised entity rather than relying on offshore structures.

That said, this move also fits a broader pattern. Payward has been pushing to build regulated, on-the-ground operations in major financial centres, connecting them back to a shared global trading infrastructure. The idea is simple: clients in Dubai, London or elsewhere access the same order book, balance sheet and multi-asset coverage, but within a framework defined by the local regulator. Sethi described it as the difference a proper rulebook should make.

Kraken plans to introduce its Buy, Trade and Earn products in the UAE, offering spot trading and staking initially, subject to regulatory permissions. Over time, the company expects to add derivatives, lending and additional investment products for qualified investors. For a market like Dubai, which has been positioning itself as a regional and global crypto hub, this definitely strengthens the ecosystem.

Kraken, founded in 2011, is among the longest-standing crypto platforms globally. It lists more than 600 digital assets and also provides access to traditional instruments such as US futures and US-listed stocks and ETFs, along with six national currencies including GBP, EUR and USD. Over the years, it has built a reputation around security and transparency, becoming the first crypto platform to conduct a Proof of Reserves audit, a step that was widely seen as spot on in an industry sometimes criticised for opacity.

Payward itself operates as the infrastructure layer behind Kraken and other products such as NinjaTrader, Breakout, xStocks and CF Benchmarks. Its model separates infrastructure from customer-facing products, allowing it to scale and launch new offerings at relatively low marginal cost while maintaining regulatory seperation and risk management standards across jurisdictions.

From a regional perspective, I reckon this is another sign that the UAE is doubling down on its role as a serious digital assets hub, not just a flashy headline market. And believe it or not, clarity, the boring stuff like licences, categorisation rules and capital requirements, is often what makes investors chuffed to bits.

For startups and fintech founders across MENA, especially those following Arageek for cues on where the smart money is moving, this development sends a clear message. Regulation is no longer the hurdle. In places like Dubai, it might just be the catalyst.

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