Kraken’s parent company, Payward, has received full market approval from Dubai’s Virtual Assets Regulatory Authority (VARA) for its local entity, Payward FZCO. This authorization completes the regulatory process that began with preliminary approval in May 2026 and was formally issued on October 6. The license enables Payward to offer management, investment, and broker-dealer services to retail, professional, and institutional investors within the emirate.
At launch, Kraken clients in the UAE will access spot and margin trading pairs denominated in UAE dirham (AED), along with direct deposit withdrawals. Payward announced the rollout on Monday, targeting a service launch in the coming weeks. This development expands regulated digital asset options in Dubai, where VARA currently lists 58 licensed providers, up from 49 in May 2026. The move coincides with broader crypto adoption in the UAE, including recent initiatives by Standard Chartered and Capital.com under different regulatory frameworks.
The granting of full market approval to Payward FZCO signifies a maturation of Dubai’s regulatory environment, moving beyond preliminary clearances to operational licenses that support complex financial services like margin trading and fiat integration. By allowing AED-denominated pairs and direct deposits, Kraken is aligning its global infrastructure with local currency needs, reducing friction for users who previously relied solely on crypto-to-crypto transactions. This step reinforces VARA’s role as a comprehensive regulator capable of overseeing both retail and institutional participation in virtual assets.
From an Institutional Adoption perspective, this approval highlights the competitive pressure on traditional finance entities operating in the region. With banks like Standard Chartered entering the space through separate licensing channels such as the DIFC, exchanges must secure robust regulatory standing to differentiate their offerings. Kraken’s ability to serve institutional investors alongside retail clients positions it to capture a broader segment of the market, leveraging its established brand while navigating the increasingly crowded landscape of licensed providers in Dubai.
