USDPayward Gets Preliminary Dubai Approval
Kraken Parent Moves Toward Regulated UAE Expansion
TL;DR
- Payward received preliminary VARA approval on May 21, 2026.
- The approval covers broker-dealer, investment, and management licensing.
- Kraken’s UAE plans include spot, margin, OTC, staking, Kraken Prime, and AED funding.
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Payward, the parent company of Kraken, received preliminary approval from Dubai’s Virtual Assets Regulatory Authority on May 21, 2026, advancing Kraken’s plan to expand regulated crypto services in the United Arab Emirates while still leaving full operational approval unresolved.
The approval covers a broker-dealer, investment, and management licence tied to Payward’s planned UAE expansion. The status marks an initial regulatory clearance rather than a completed launch, meaning Payward has cleared an early VARA hurdle but has not yet received a full operational license to serve Dubai customers.
VARA’s licensing process is multi-stage and requires applicants to meet additional conditions before customer-facing activity can begin. The preliminary approval indicates Payward has met baseline requirements linked to corporate governance, compliance frameworks, and anti-money laundering controls.
Kraken Plans Institutional and Retail Services Under VARA Rules
Payward’s planned Dubai service scope includes spot trading, margin trading, OTC trading, staking, and institutional access through Kraken Prime. Retail client activity will be limited to services explicitly allowed under VARA’s retail-access framework, according to Payward.
UAE clients are expected to access Kraken’s global order books across Europe, the United States, and APAC markets. Funding and withdrawals will be available in UAE dirhams through a locally regulated Payward subsidiary, with AED funding expected later in 2026.
Kraken said on May 21, 2026, that it is “now authorized by VARA in Dubai,” with authorization covering spot, margin, OTC, staking, and institutional access through Kraken Prime. Arjun Sethi, co-CEO of Payward and Kraken, said: “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 the rulebook is written down and the supervisor is local. That is what a license should mean.”
Sethi also said: “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.”
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Payward Links Dubai Push to Broader Regulated Expansion
Payward said the Dubai expansion fits its broader international strategy of building regulated operations in major global financial hubs. The UAE push follows Kraken’s rollout of CFTC-regulated crypto spot margin trading in the United States after Payward completed its acquisition of derivatives venue Bitnomial.
Payward has also pursued a national trust charter application with the Office of the Comptroller of the Currency. The company separately agreed to acquire Hong Kong-based stablecoin payments firm Reap Technologies for $600 million in cash and stock, issuing shares at a $20 billion valuation.
Payward reported $507 million in first-quarter 2026 adjusted revenue, up 3% year over year. Adjusted EBITDA fell to $18 million from $168 million in the prior-year period.
VARA lists roughly 49 approved entities across exchanges, brokerages, and custodians. Kraken’s Dubai approval places it in competition with Binance, OKX, and Crypto.com, with Kraken Prime positioned against Binance Institutional, OKX Liquid Marketplace, and Crypto.com’s institutional desk.
Kraken previously operated in the UAE before exiting around 2024. Its earlier UAE presence included Abu Dhabi exchange approval from ADGM in 2022, outside VARA’s Dubai jurisdiction.
The exact customer launch timeline remains unknown. Preliminary approvals can take months to convert into full operational licenses, depending on applicant readiness and VARA review. It is also unclear whether the Dubai entity will operate directly under the Kraken brand or under a separate Payward subsidiary.
FAQ
What did Payward receive?
Preliminary approval from Dubai’s Virtual Assets Regulatory Authority.
Can Kraken launch immediately in Dubai?
No. Full operational approval is still unresolved.
What services are planned?
Spot, margin, OTC, staking, Kraken Prime, and AED funding.
Who leads Payward and Kraken?
Arjun Sethi is co-CEO of Payward and Kraken.
This article has been refined and enhanced by ChatGPT.
