Kraken Obtains Preliminary Approval from Dubai's VARA... Returning to UAE After 2 Years with Middle East Expansion Strategy

On May 21, 2026, Payward Inc, the parent company of global virtual asset exchange Kraken, obtained preliminary approval from the Dubai Virtual Assets Regulatory Authority (VARA). This approval includes broker-dealer and investment management authorizations, marking a significant regulatory achievement approximately two years after Kraken withdrew from the United Arab Emirates (UAE) market.

Through this license acquisition, Kraken has re-entered the Middle East market under the supervision of VARA, the world's first independent virtual asset regulatory body. This demonstrates Kraken's commitment to competing in earnest with existing major exchanges in Dubai, which has emerged as a global financial hub.

The preliminary approval obtained by Payward provides the legal basis to offer virtual asset broker-dealer operations and investment management services within Dubai. This is the result of VARA's rigorous review of the applicant company's business model and operational capabilities, and it is a prerequisite for obtaining the final license.

Obtaining a VARA license is considered the 'gold standard' for proving a platform's reliability, suggesting that Kraken prioritizes regulatory compliance and security.

Kraken's return was already anticipated through a job posting for a Compliance and Risk Officer published on September 1, 2025. Entering the UAE market again after a nearly two-year hiatus signifies the growing strategic importance of the Middle East region.

Dubai's 2026 Regulatory Environment and Global Standards

As of 2026, Dubai's VARA regulatory framework has reached a mature stage, encompassing AI-based market surveillance and Decentralized Finance (DeFi). These strict guidelines are a key factor in making global exchanges perceive Dubai as a safe investment destination.

• Bitpanda: On Monday, May 18, it formalized its expansion outside Europe by obtaining a full VASP license in Dubai.
• First Crypto Exchange L.L.C: On April 26, it activated its broker-dealer service license and was listed on VARA's public register.
• Liquidity Fintech FZE: It has secured status as a virtual asset service provider within VARA's regulatory framework and is accelerating local operations.

Kraken aims to expand its market share in a market led by Binance and OKX by emphasizing its professional trading tools and security. In particular, its reliability—having experienced no major hacking incidents since its founding in 2011—acts as a strong competitive advantage in the tightened regulatory environment of 2026.

This entry aligns with the United Arab Emirates' goal of becoming a global virtual asset hub, and the joining of established companies like Kraken is expected to increase market liquidity. Experts analyze that the expansion of these institutional exchanges will lead to qualitative growth in virtual asset trading volume within the region.

Delay in Initial Public Offering and Future Operational Plans

Meanwhile, Kraken's Initial Public Offering (IPO) schedule is reportedly being delayed from its original plan, according to a May 2026 report. Additionally, Kraken is planning to delist a number of tokens starting September 5, accelerating portfolio adjustments in response to market changes.

Consequently, Kraken's return to Dubai is evaluated as a key step in its global expansion strategy based on regulatory compliance. Having passed VARA's strict standards, Kraken's performance in the Middle Eastern market will serve as an important indicator for the future moves of global virtual asset exchanges.