Kraken Secures Dubai VARA License Ahead of Planned 2027 IPO

Crypto exchange Kraken, operated by parent company Payward, has secured regulatory approval from Dubai’s Virtual Asset Regulatory Authority (VARA), marking a significant step in its global expansion strategy. The approval allows Kraken to expand regulated crypto services in the United Arab Emirates through its locally licensed entity, strengthening its presence in the Middle East crypto market.

With the VARA license, Kraken Prime will offer institutional and retail users access to services including instant trading, margin trading, OTC trading, staking products, and institutional-grade crypto solutions. UAE customers will also gain access to Kraken’s global liquidity network spanning the United States, Europe, and Asia-Pacific regions. In addition, clients will be able to deposit and withdraw funds directly in UAE dirhams through the company’s regulated Dubai subsidiary.

Kraken Co-CEO Arjun Sethi praised Dubai’s progressive crypto regulations, noting that the emirate established a clear digital asset framework before many other jurisdictions recognized the industry. According to Sethi, operating under VARA provides stronger investor confidence by allowing Kraken to serve customers through a fully supervised local entity instead of relying on offshore operations.

The Dubai expansion follows Kraken’s recent rollout of regulated margin trading services in the United States. While UAE users currently have access to Kraken’s Buy, Trade, and Earn products, including spot crypto trading and staking, the company plans to introduce additional offerings such as derivatives trading, crypto lending, and investment products for eligible clients in the future.

The regulatory milestone comes as Payward reportedly postponed its anticipated U.S. IPO from 2026 to 2027. The company had already filed confidential paperwork with the U.S. Securities and Exchange Commission (SEC). Reports suggest Kraken is targeting a valuation of nearly $20 billion ahead of its public debut. The delay reportedly allows the exchange to focus on artificial intelligence integration and operational restructuring efforts, including recent workforce reductions.

Kraken also recently partnered with Franklin Templeton to expand into tokenized securities, further positioning itself within the growing digital asset ecosystem.