Kraken’s parent company, Payward, received Full Market Approval from Dubai’s Virtual Assets Regulatory Authority (VARA) on October 12, authorizing its subsidiary Payward FZCO to launch regulated cryptocurrency services across the United Arab Emirates. This final licensing stage permits the exchange to serve retail, professional, and institutional investors with spot and margin trading in UAE dirhams (AED), alongside direct local currency deposits and withdrawals without fiat conversion.
The initial service offering includes on-chain staking, tokenized equities via the xStocks platform, and crypto transfers through Kraken’s payments app, Krak. Institutional clients will gain access to over-the-counter spot trading and Kraken Prime brokerage services. Co-CEO Arjun Sethi stated that UAE customers would trade on the same order book and multi-asset coverage available in other markets, citing VARA’s framework as one of the world's clearest regulatory environments. Payward now holds more than 100 licenses and registrations globally.
This approval marks a significant milestone for Kraken’s global expansion strategy, transitioning from preliminary operational setup to full commercial activity in a key Middle Eastern hub. By securing the final VARA license, Payward FZCO can legally onboard clients and offer comprehensive financial products, including AED-denominated trading and institutional prime brokerage. The ability to trade directly in local currency removes friction for regional users, potentially accelerating adoption among both retail and institutional segments who previously faced conversion hurdles or regulatory uncertainty.
From a Regulation perspective, this development underscores Dubai’s ongoing effort to establish itself as a compliant jurisdiction for digital assets. The structured licensing process, moving from preliminary authorization to full market approval, provides a clear pathway for exchanges while maintaining oversight. For Kraken, operating under VARA’s framework allows it to leverage its existing global infrastructure—such as shared order books—to compete effectively against other licensed entities like Deribit, reinforcing the trend of major exchanges seeking legitimacy through rigorous local compliance rather than offshore ambiguity.
