Institutional Clients in Dubai May Soon Trade $XRP, $BTC, $HYPE, and More on Kraken

Payward Clears Dubai's VARA Hurdle

Payward, the parent company of crypto exchange @Kraken, has received preliminary authorization from Dubai's Virtual Assets Regulatory Authority (VARA) for broker-dealer, investment, and management services. The approval marks a significant step in Kraken's push to build a regulated presence in the United Arab Emirates, one of the world's most active jurisdictions for digital asset licensing.

According to Kraken's official announcement, Payward FZCO is licensed by VARA as a Virtual Asset Service Provider, with the authorization permitting the provision of virtual asset services to both retail and professional investors in the Emirate of Dubai, subject to VARA's regulatory framework and applicable conditions. The approval is preliminary, meaning full operational licenses will be granted only after the company meets all remaining regulatory requirements.

What UAE Clients Can Expect

Once fully operational, UAE-based clients will gain access to a broad range of services through the locally regulated Payward entity. These include spot trading, margin trading, over-the-counter (OTC) services, and staking. Institutional clients will also have access through @Kraken Prime, Kraken's dedicated platform offering trading, custody, and OTC through a single account.

Crucially, clients will be able to fund and withdraw in UAE dirhams (AED), providing a local on-ramp to Kraken's global liquidity pools and $BTC orderbooks. AED funding is expected to launch later in 2026. Over time, Kraken also plans to expand into derivatives, lending, and new investment products for qualified clients.

This move positions @Kraken in direct competition with Binance, OKX, and Crypto.com, all of which have already secured VARA licenses in Dubai. The institutional segment is seen as the key battleground, with Kraken Prime going up against established institutional desks already operating in the emirate.

The UAE's appeal for crypto firms is well established. VARA was created specifically to regulate virtual assets in Dubai and has attracted dozens of licensed entities across exchanges, brokerages, and custodians. For Kraken, the VARA license also builds on its earlier regulatory footprint in Abu Dhabi's ADGM framework, which it first secured in 2022 before exiting the following year.

Sources:
Kraken Official Announcement: Payward Secures VARA Authorization in UAE
Crypto Times: Kraken Expands into Dubai with VARA Regulatory Approval
BeInCrypto: Kraken Wins Major License in Dubai