Kraken received preliminary approval from the Dubai Virtual Assets Regulatory Authority this Thursday (21). This clearance allows regulated operations in the United Arab Emirates (UAE) and positions the US exchange in competition with Binance, OKX, and Crypto.com for local institutional flow.
The local unit will offer spot trading, margin, OTC trading, staking, and access to Kraken Prime for institutional clients.
New battle for institutional flows from the UAE
VARA has established Dubai as a regulated environment for crypto early on. The authority currently lists around 49 approved entities including exchanges, brokers, and custodians.
Kraken is now authorized by VARA in Dubai.
Authorization covers spot, margin, OTC, staking, and institutional access through Kraken Prime. $AED funding follows later this year.
Full details: https://t.co/EUChz8IOQo
— Kraken (@krakenfx) May 21, 2026
Key competitors already in operation include Binance's license in Dubai, OKX's virtual asset authorization, and Crypto.com's preparatory licensing stage.
Kraken has operated in the UAE before but exited around 2024. The previous presence included exchange approval in Abu Dhabi by ADGM in 2022, but that license wasn’t valid in VARA's jurisdiction.
The new authorization directs operations via Dubai, the largest emirate with crypto-focused regulations. VARA has also tightened requirements on existing operator licenses in recent months.
Institutional services are the main battleground. Kraken Prime allows qualified investors to access trading, custody, and OTC operations all in one account.
The product competes with Binance Institutional, OKX Liquid Marketplace, and Crypto.com's institutional desk in Dubai.
... Dubai wrote a set of rules for crypto even before most jurisdictions recognized this asset class. This clarity is why there's now real liquidity and institutional capital in the UAE, stated Arjun Sethi, co-CEO of Payward and Kraken, in an excerpt from the official statement.
Funding in AED is set to launch in 2026 and could ramp up the competition even further. The direct integration of the dirham channels local capital straight into Kraken's global order books.
The speed at which Kraken turns the preliminary approval into a full operational license will define its short-term positioning against already established competitors.
The article 'Kraken secures key license in Dubai, Binance and OKX to face new competition' was first seen on BeInCrypto Brazil.