Payward, the parent company of the Kraken crypto exchange, has been approved by the Virtual Asset Regulatory Authority (VARA) of Dubai. The license will allow the platform to expand within the United Arab Emirates. It marks a major feat as the exchange plans an U.S. IPO debut by 2027.
Kraken Gets VARA Approval In Dubai
This approval paves the way for Kraken to step closer towards offering regulated crypto services in Dubai via a locally regulated entity. For context, Kraken Prime will provide the users with instant trading, margin trading, OTC trading, staking products and institutional services.
Recently, Kraken launched regulated margin trading in the U.S. Now, UAE users will also have access to Kraken’s worldwide liquidity network in the U.S., Europe and Asia-Pacific markets. Payward’s local regulated subsidiary will enable clients to deposit and withdraw funds in UAE dirhams.
“Dubai wrote a rulebook for crypto before most jurisdictions even acknowledged the asset class,” said Arjun Sethi, the Co-CEO of Payward and Kraken. He further added, “That clarity is why real liquidity and institutional capital now sit in the UAE. Operating under VARA puts Kraken inside that perimeter, serving clients through a local, supervised entity rather than from offshore.”
Sethi added, “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.”
The expansion is part of Kraken’s international expansion efforts that include local regulatory compliance in major financial centres.
UAE customers will have to wait for more approvals. For now, they will get access to the company’s Buy, Trade and Earn services, such as spot crypto trading and staking, says the company.
Kraken will also offer several other services later. The plans involve derivatives trading, lending products, and investment services to eligible clients.
Inside The Company’s IPO Timeline
The Dubai feat comes on the heels of Payward delaying its anticipated U.S. public listing to 2027. The company had already submitted papers with the SEC under seal.
Moreover, earlier, it was aiming to list in 2026. Nonetheless, the company postponed the timeline as it wants to focus on AI integration for which it even laid off 150 employees this month.
According to prior reports, Kraken is aiming to place its valuation close to $20 billion ahead of the IPO.
Meanwhile, it is worth noting that it recently partnered Franklin Templeton to launch tokenized securities.
Source: https://coingape.com/kraken-bags-vara-license-in-dubai-amid-ipo-plans/
