Kraken’s parent company, Payward, has secured full market approval from Dubai’s Virtual Asset Regulatory Authority (VARA), enabling it to operate as a regulated virtual asset service provider in the United Arab Emirates. The company announced on Tuesday that this license allows Payward to serve retail, professional, and institutional investors across the region. This final authorization follows a preliminary approval granted in May, which permitted the firm to complete its operational infrastructure before onboarding clients.
Upon launch, Kraken users in the UAE will access spot and margin trading with dirham-denominated pairs, along with direct funding and withdrawals in local currency. The platform will also offer on-chain staking, xStocks tokenized equities, and Krak for crypto transfers. Institutional clients will gain access to OTC spot trading and Kraken Prime. The company stated that crypto derivatives and new yield products are expected later in 2026 and into 2027, contingent upon further regulatory approvals.
Payward currently holds more than 100 licenses and registrations globally, covering Europe, the Americas, Asia-Pacific, and the Middle East. This expansion coincides with significant strategic partnerships. In September, Bloomberg reported that Nasdaq Inc. invested $100 million in Payward, valuing the company at $21 billion, with plans to distribute Nasdaq’s tokenized stocks via Kraken. Additionally, Payward recently partnered with SoFi Technologies to route customer crypto orders through Kraken Prime and list SoFi’s stablecoin on the exchange.
The acquisition of full VARA licensing marks a critical milestone for Kraken’s global compliance strategy, transitioning the UAE operation from a setup phase to active client onboarding. By securing regulatory status early, Payward positions itself to capture market share in a jurisdiction where clear rules for digital assets have attracted substantial institutional interest. The ability to offer dirham-denominated trading and fiat rails directly addresses local liquidity needs, potentially reducing friction for regional users compared to competitors relying solely on stablecoins or foreign currency pairs.
This development underscores the broader trend of major crypto exchanges integrating traditional finance products under regulated frameworks. With Nasdaq’s investment and the SoFi partnership already in place, Kraken is leveraging its regulatory footprint to bridge decentralized and centralized financial systems. However, the delayed rollout of derivatives and yield products until late 2026 suggests a cautious approach to complex financial instruments, prioritizing core trading stability while awaiting specific regulatory greenlights for higher-risk offerings.
