United Arab Emirates · Hong Kong · The Block
Kraken parent Payward locks in preliminary VARA approval for Dubai expansion
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★ Tier-1 Source
Kraken’s parent company, Payward, secured preliminary approval from Dubai’s Virtual Assets Regulatory Authority for a broker-dealer, investment, and management licence, clearing a regulatory pathway for the exchange’s expansion into the United Arab Emirates.
Key facts
- Payward separately agreed to acquire Hong Kong-based stablecoin payments firm Reap Technologies for $600million in cash and stock, issuing shares at a $20 billion valuation
- Payward recently reported $507 million in first-quarter 2026 adjusted revenue, up 3% year over year, while adjusted EBITDA fell to $18 million from $168 million in the prior-year period
- The authorization places Kraken under VARA’s supervisory perimeter in Dubai and enables the firm to offer regulated virtual asset services in the jurisdiction, including spot, margin, and OTC
- 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,” Arjun Sethi, co-CEO of Payward and Kraken, said
Summary
The authorization places Kraken under VARA’s supervisory perimeter in Dubai and enables the firm to offer regulated virtual asset services in the jurisdiction, including spot, margin, and OTC trading, staking, and institutional access through Kraken Prime. According to the statement, UAE clients will be able to trade through Kraken’s global orderbooks spanning Europe, the U.S., and APAC markets, while funding and withdrawals will be available in dirhams through a locally regulated Payward subsidiary. “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,” Arjun Sethi, co-CEO of Payward and Kraken, said.