Payward, the parent company of cryptocurrency exchange Kraken, has secured final approval from Dubai’s Virtual Assets Regulatory Authority (VARA) for its local entity, Payward FZCO. This license enables Kraken to offer spot and margin trading in UAE dirham (AED)-denominated pairs, along with direct deposit withdrawals for clients in the United Arab Emirates. The regulatory clearance, issued on October 6, follows a preliminary approval granted in May 2026 and allows Payward to serve retail, professional, and institutional investors. The company announced that it is targeting a service launch within the coming weeks.
The VARA registry currently lists 58 licensed virtual asset service providers, an increase from 49 active companies recorded in May 2026. This expansion coincides with broader efforts by traditional financial institutions to enter the crypto market under various UAE regulatory frameworks. In September, Standard Chartered launched spot Bitcoin and Ether trading for institutional clients via its Dubai International Financial Centre branch, regulated by the Dubai Financial Services Authority. Additionally, in August, trading platform Capital.com announced plans to provide spot crypto services after its affiliate, Capital Vault, obtained a virtual-asset license from the country’s Capital Market Authority.
Kraken’s receipt of a full VASP license from VARA marks a significant step toward integrating digital assets into the mainstream financial infrastructure of the UAE. By enabling AED-denominated trading and direct fiat on-ramps, Payward addresses key friction points for local users who previously relied on offshore exchanges or complex conversion processes. This regulatory clarity positions Kraken to compete directly with traditional banks and brokers that are also expanding their crypto offerings under different jurisdictions like the DIFC and CMA, suggesting a fragmented but rapidly maturing regulatory landscape where multiple authorities oversee distinct aspects of the digital asset ecosystem.
The rapid growth in licensed entities, from 49 to 58 providers since May, indicates intense competition among both crypto-native firms and traditional financial institutions vying for market share in the region. For institutional investors, the ability to access management, investment, and broker-dealer services through a locally licensed entity reduces counterparty risk and enhances compliance posture. However, the coexistence of VARA, DFSA, and CMA regulations requires participants to navigate varying compliance standards, potentially creating operational complexities for firms seeking to offer comprehensive services across all emirates without relying on specific free-zone licenses.
