Kraken Gains Dubai Approval as Crypto Exchange Advances Global Expansion Plans
Crypto exchange Kraken has received initial regulatory approval in Dubai from the UAE’s Virtual Asset Regulatory Authority (VARA), marking another step in the company’s international growth strategy. The approval allows Kraken to strengthen its presence in the Middle East while continuing preparations for a future U.S. public listing.
Kraken Receives VARA Approval In Dubai
Payward, Kraken’s parent company, announced that its approval from Dubai regulators will support the rollout of regulated crypto services through a locally supervised entity in the United Arab Emirates.
The expansion is expected to provide UAE clients access to services including:
- Spot cryptocurrency trading
- Margin trading
- Over-the-counter (OTC) trading
- Staking products
- Institutional investment services
Kraken’s local operations will also enable users to deposit and withdraw funds using UAE dirhams, while benefiting from the exchange’s broader liquidity network spanning the U.S., Europe, and Asia-Pacific regions.
According to Kraken Co-CEO Arjun Sethi, Dubai’s early regulatory framework for digital assets helped establish the region as an attractive destination for institutional capital and crypto businesses.
Sethi highlighted that operating under a local regulatory structure allows Kraken to offer services under direct supervision rather than relying on offshore entities.
UAE Expansion Part Of Kraken’s Global Strategy
Kraken has been increasing efforts to expand into regulated financial jurisdictions worldwide. The Dubai approval aligns with the company’s broader objective of complying with local regulations while extending crypto services internationally.
Initially, UAE customers will gain access to Kraken’s Buy, Trade, and Earn offerings, including spot trading and staking products.
Additional services are expected to launch later and could include:
- Crypto derivatives trading
- Lending products
- Investment services for eligible users
Kraken Delays IPO Timeline To 2027
The Dubai regulatory milestone arrives shortly after reports that Kraken postponed its anticipated U.S. initial public offering (IPO).
The company was previously targeting a 2026 public debut but has reportedly shifted expectations toward 2027 despite already filing confidential paperwork with the U.S. SEC.
Reports suggest Kraken delayed the process partly to prioritize artificial intelligence integration initiatives. The company also reduced staffing levels earlier this month, laying off approximately 150 employees.
Market reports indicate Kraken could pursue a valuation near $20 billion ahead of a future IPO.
Partnership Activity Continues
Alongside global expansion efforts, Kraken recently partnered with Franklin Templeton to support tokenized securities initiatives, signaling continued interest in blockchain-based financial products beyond traditional crypto trading.
The latest Dubai approval may further strengthen Kraken’s position as it seeks growth in regulated markets before a potential public listing.
