Kraken Expansion in the UAE by Kraken has been recently declared, as its parent company, Payward Inc., has obtained provisional authorization for broker-dealer, investment, and management licenses by the Virtual Assets Regulatory Authority (VARA), Dubai. The Kraken Expansion is an important part of its efforts to expand its regulated footprint in the key financial centers around the world.
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Kraken Unlocks Full Crypto Services in UAE
The Kraken Expansion would mean that the Kraken exchange could provide its users from the UAE market an array of services, ranging from spot trading, margin trading, OTC trading, staking services, user-to-user transfers via Krak, and Kraken Prime services for institutional clients.
With this expansion, not only will UAE-based customers have access to global order books across Europe, the United States, and the Asia-Pacific regions, but their users will also be able to enjoy higher liquidity and faster execution times on a larger scale.
Customers will be able to make deposits and withdrawals using UAE dirhams (AED) via the Payward platform that will be regulated on the local level. Thus, an additional connection will be created between the local and global financial markets.
Arjun Sethi, co-chief executive officer of Payward Inc and Kraken, says that the Kraken Expansion is proof of Dubai’s early role in establishing regulatory guidelines for digital assets.
He further clarified that Dubai had adopted crypto regulations in a more structured fashion compared to other areas, thus helping in attracting liquidity and institutions. He also mentioned that with this expansion by Kraken, the company is able to function in a local jurisdiction rather than an offshore one.
Kraken Expansion as Part of Global Growth Strategy
Kraken Expansion is just one step in an overall strategy for establishing regulated operations within important financial hubs across the globe. Kraken seeks to integrate each new region into its primary trading platform without compromising service levels.
According to Sethi, users will have access to the same order books, assets, and infrastructure that exist in other markets as well. The only distinction between the two is that this time around, regulation will be done by the UAE authorities themselves.
After the launch of the Kraken Expansion, the company will then launch its Buy, Trade, and Earn features in the UAE after receiving all necessary approvals. As time progresses, the company is also set to launch other products, such as derivatives, lending, and other investment offerings.
The local Payward FZCO will work within the VAAS framework established by the VARA. This means that services can be offered to both retail and professional customers, depending on the terms established by the VARA.
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