Key Takeaways
- • Kraken, the U.S.-based crypto exchange operated by parent Payward, has received a full license from Abu Dhabi Global Market (ADGM) and the regulator's final licensing stage in Dubai, clearing the way for UAE launch within weeks.
- • Kraken will become the first crypto exchange to offer direct AED (UAE dirham) deposits, withdrawals and spot and margin trading in dirham-denominated pairs against bitcoin, ether and other virtual assets.
- • The company is opening a regional headquarters in Abu Dhabi, with Kraken's managing director for Europe, the Middle East and Africa, Curtis Ting, citing access to local currency and global liquidity as the rationale.
- • The UAE launch comes amid intensifying competition from Binance, OKX, Crypto.com and Bybit, while the country faces international scrutiny over anti-money laundering controls after being placed on the FATF grey list.
Summary
Kraken has secured a full financial license from the Abu Dhabi Global Market (ADGM) and cleared the final licensing stage with Dubai's regulator, according to publisher reports. Kraken is described as the first global virtual assets exchange group in the UAE to receive a full financial licence from the ADGM. The planned rollout includes dirham deposits and withdrawals and AED trading pairs, with launch reported as expected within weeks. Parent company Payward reportedly received the final Dubai approval roughly five months after earlier stages.
According to CNBC, Kraken will open its regional headquarters in Abu Dhabi and become the first cryptocurrency exchange to offer direct funding and trading in UAE dirhams against bitcoin, ether and other virtual assets. Curtis Ting, Kraken's managing director for Europe, the Middle East and Africa, said the company wants investors and traders in the region to have access to local currencies, which he framed as facilitating access to global markets and liquidity.
The expansion reflects the Middle East's growing role in crypto markets. Citing Chainalysis, CNBC reported the region accounts for about 7% of global trading volumes, and the UAE transacts approximately $25 billion in cryptocurrency annually based on data from July 2020 to June 2021. Kraken, founded in 2011, operates in more than 60 countries.
Kraken is entering a competitive field. Binance received approval to operate in Abu Dhabi, Bybit was approved to open a Dubai headquarters, and FTX received a Dubai virtual-asset license, according to CNBC. Publisher coverage also places Kraken alongside Binance, OKX and Crypto.com in the regulated UAE market.
The UAE's regulatory position remains under scrutiny. The Financial Action Task Force placed the UAE on its grey list of jurisdictions requiring enhanced monitoring over money-laundering risks, and CNBC reported that crypto firms in the UAE have faced liquidation requests tied to the war in Ukraine, citing Reuters. Ting said compliance, including anti-money laundering and know-your-customer controls, is central to the company's approach.
According to CNBC, Kraken will open its regional headquarters in Abu Dhabi and become the first cryptocurrency exchange to offer direct funding and trading in UAE dirhams against bitcoin, ether and other virtual assets. Curtis Ting, Kraken's managing director for Europe, the Middle East and Africa, said the company wants investors and traders in the region to have access to local currencies, which he framed as facilitating access to global markets and liquidity.
The expansion reflects the Middle East's growing role in crypto markets. Citing Chainalysis, CNBC reported the region accounts for about 7% of global trading volumes, and the UAE transacts approximately $25 billion in cryptocurrency annually based on data from July 2020 to June 2021. Kraken, founded in 2011, operates in more than 60 countries.
Kraken is entering a competitive field. Binance received approval to operate in Abu Dhabi, Bybit was approved to open a Dubai headquarters, and FTX received a Dubai virtual-asset license, according to CNBC. Publisher coverage also places Kraken alongside Binance, OKX and Crypto.com in the regulated UAE market.
The UAE's regulatory position remains under scrutiny. The Financial Action Task Force placed the UAE on its grey list of jurisdictions requiring enhanced monitoring over money-laundering risks, and CNBC reported that crypto firms in the UAE have faced liquidation requests tied to the war in Ukraine, citing Reuters. Ting said compliance, including anti-money laundering and know-your-customer controls, is central to the company's approach.
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