Payward, the parent company of Kraken, has secured Full Market Approval from Dubai's Virtual Asset Regulatory Authority (VARA), enabling it to operate as a regulated virtual asset service provider for retail, professional, and institutional clients in the UAE. This final licensing stage follows preliminary approval granted in May, with plans to launch services within weeks. Initial offerings will include spot and margin trading in dirham-denominated pairs, local deposits and withdrawals, on-chain staking, tokenized equities via xStocks, and institutional OTC and brokerage services. Payward also intends to provide embedded trading-as-a-service infrastructure to regional partners.
The launch strategy focuses on dirham pairs and local banking rails as key competitive differentiators against other VARA-licensed exchanges like Binance, OKX, Bybit, and Crypto.com. However, Kraken will initially lack crypto derivatives and perpetual futures products, which are expected later in 2026 or into 2027 subject to further regulatory approvals. Co-CEO Arjun Sethi stated that UAE clients will access the same order book and multi-asset coverage available in other markets.
Kraken’s full VARA approval marks a significant milestone in its global expansion, positioning the exchange to compete directly in the Gulf region’s growing digital asset market. By prioritizing dirham-denominated pairs and local banking integration, Payward addresses critical friction points for UAE users, potentially capturing market share from competitors who may rely more heavily on stablecoin or fiat gateways without deep local currency support. The inclusion of institutional services and tokenized equities suggests a broad-spectrum approach aimed at both retail accessibility and enterprise-grade utility.
However, the absence of perpetual futures at launch presents a strategic gap, particularly given their dominance in regional trading volume among rivals. While this limitation stems from pending regulatory approvals rather than technical inability, it may temporarily hinder Kraken’s ability to attract high-frequency traders and derivative-focused institutions. Success will depend on how quickly additional licenses are secured and whether the core spot and margin offerings can sustain user engagement during this interim period.
