Kraken Secures Dubai Crypto License Ahead of UAE Launch
Payward Inc. (NASDAQ:KRAKEN), the parent company of cryptocurrency exchange Kraken, secured Full Market Approval from Dubai's Virtual Assets Regulatory Authority. The final regulatory milestone allows Kraken to begin onboarding retail, professional, and institutional investors across the United Arab Emirates in the coming weeks. At launch, regional clients can deposit, trade, and withdraw using local UAE dirhams for spot and margin trading.
The move expands Kraken's international footprint into a competitive Middle Eastern market already populated by major rival exchanges. The approval comes during a period of shifting market dynamics for Payward, which reported a 17% year-over-year revenue increase to $508 million in the second quarter, even as platform transaction volumes declined 13% quarter-over-quarter to $310 billion.
Looking ahead, Kraken plans to expand its product lineup in the UAE with crypto derivatives and yield offerings in late 2026 or 2027, subject to separate regulatory approval. The company also intends to offer its trading infrastructure as an embedded service to regional financial firms, while pursuing a potential public stock listing no earlier than the second quarter of 2027.
Key points
- Payward Inc. received Full Market Approval from Dubai's Virtual Assets Regulatory Authority to launch Kraken in the UAE within weeks.
- UAE traders gain access to spot and margin trading in dirhams, direct local currency deposits, and institutional services.
- Payward reported Q2 revenue of $508 million, up 17% year-over-year, despite platform trading volume dropping 13% quarter-over-quarter.
- Kraken plans to launch derivatives in 2026 or 2027 and is aiming for a potential public listing no earlier than Q2 2027.
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How we writeDisclaimerQuestions and answers
When will Kraken start operating in the UAE?
Kraken plans to begin onboarding clients and offering trading services in the UAE in the coming weeks following its full regulatory approval.
What trading services will Kraken offer at launch in Dubai?
UAE clients can deposit and withdraw dirhams directly while trading spot and margin pairs, alongside access to staking, tokenized equities, and institutional tools.
When will Kraken offer crypto derivatives in the UAE?
Payward expects to roll out crypto derivatives and additional yield products in late 2026 or 2027, subject to approval from Dubai regulators.