Kraken Secures Preliminary VARA License for Dubai Market Re-Entry

Payward, Kraken's parent company, received preliminary broker-dealer and investment management authorization from Dubai's Virtual Asset Regulatory Authority (VARA) on 21 May 2026. VARA operates a two-stage licensing process for virtual asset service providers in Dubai. The preliminary authorization is the first stage. A full operational license follows after Payward completes VARA's review. Most applicants in Dubai complete this process within three to six months. Until the final license is issued, Kraken cannot activate local operations or AED-denominated trading.

"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.", 21 May 2026.

— Arjun Sethi, Co-CEO, Payward / Kraken

Services available to UAE clients under the authorizationThe authorization enables spot trading, margin trading, over-the-counter (OTC) trading, staking, and crypto transfers. Institutional clients can access Kraken Prime, the exchange's platform for professional and high-volume traders. Buy, trade, and earn products are also included in the scope of the authorization. Dirham (AED) funding and withdrawals are planned for later in 2026, once Payward holds a full operational license. Derivatives and lending products for qualified clients will require a separate approval from VARA and are designated for a later regulatory phase.

Kraken returns to UAE after Abu Dhabi exitKraken had previously entered the UAE after Abu Dhabi's Abu Dhabi Global Market (ADGM) granted regulatory approval in April 2022. The exchange launched AED trading pairs under that authorization. The exchange closed its Abu Dhabi office and suspended support for the UAE dirham in 2023, citing global market conditions and industry consolidation. Abu Dhabi's ADGM and Dubai's VARA are separate regulatory bodies within the UAE. The new VARA authorization marks Kraken's formal return to the region under a distinct regulatory framework.

"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. The difference is that the rulebook is written down and the supervisor is local.", 21 May 2026.

— Arjun Sethi, Co-CEO, Payward / Kraken "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.", 21 May 2026.

— Arjun Sethi, Co-CEO, Payward / Kraken

— Arjun Sethi, Co-CEO, Payward / Kraken Services available to UAE clients under the authorizationThe authorization enables spot trading, margin trading, over-the-counter (OTC) trading, staking, and crypto transfers. Institutional clients can access Kraken Prime, the exchange's platform for professional and high-volume traders. Buy, trade, and earn products are also included in the scope of the authorization. Dirham (AED) funding and withdrawals are planned for later in 2026, once Payward holds a full operational license. Derivatives and lending products for qualified clients will require a separate approval from VARA and are designated for a later regulatory phase.

— Arjun Sethi, Co-CEO, Payward / Kraken The authorization enables spot trading, margin trading, over-the-counter (OTC) trading, staking, and crypto transfers. Institutional clients can access Kraken Prime, the exchange's platform for professional and high-volume traders. Buy, trade, and earn products are also included in the scope of the authorization. Dirham (AED) funding and withdrawals are planned for later in 2026, once Payward holds a full operational license. Derivatives and lending products for qualified clients will require a separate approval from VARA and are designated for a later regulatory phase.

— Arjun Sethi, Co-CEO, Payward / Kraken Kraken had previously entered the UAE after Abu Dhabi's Abu Dhabi Global Market (ADGM) granted regulatory approval in April 2022. The exchange launched AED trading pairs under that authorization. The exchange closed its Abu Dhabi office and suspended support for the UAE dirham in 2023, citing global market conditions and industry consolidation. Abu Dhabi's ADGM and Dubai's VARA are separate regulatory bodies within the UAE. The new VARA authorization marks Kraken's formal return to the region under a distinct regulatory framework.

— Arjun Sethi, Co-CEO, Payward / Kraken "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. The difference is that the rulebook is written down and the supervisor is local.", 21 May 2026.

— Arjun Sethi, Co-CEO, Payward / Kraken Cryptocurrencies are highly volatile and involve significant risk. You may lose part or all of your investment. All information on Coinpaprika is provided for informational purposes only and does not constitute financial or investment advice. Always conduct your own research (DYOR) and consult a qualified financial advisor before making investment decisions. Coinpaprika is not liable for any losses resulting from the use of this information.