Dubai, UAE – Global cryptocurrency exchange Kraken is preparing to launch regulated services in the UAE after its parent company, Payward, secured a full Virtual Asset Service Provider license from Dubai’s Virtual Assets Regulatory Authority.
According to VARA’s public register, Payward FZCO, the group’s Dubai-based entity, received the full license on October 6, 2026. The approval covers broker-dealer activities as well as management and investment services, allowing the company to begin serving retail, professional and institutional clients under Dubai’s virtual asset regulatory framework.
The full authorization follows preliminary approval granted in May 2026, which allowed Payward to prepare its local operations but did not permit customer-facing services. With the new license in place, the company can now move toward a commercial launch in the UAE.
Kraken Plans AED Trading and Local Fiat Support
Kraken has not announced a specific launch date, but the exchange expects customer onboarding to begin within the coming weeks.
The initial service offering is expected to include spot and margin trading with UAE dirham-denominated pairs, along with direct AED deposits and withdrawals.
The introduction of local fiat support will allow UAE customers to move directly between dirhams and supported cryptocurrencies without having to first convert funds into another currency.
Eligible customers are also expected to gain access to onchain staking, tokenized equity products through xStocks and cryptocurrency transfers through Krak.
Institutional clients will be offered over-the-counter spot execution services alongside Kraken Prime, the exchange’s institutional trading platform.
Arjun Sethi, co-CEO of Payward and Kraken, said UAE customers will be connected to Kraken’s global trading infrastructure rather than being placed into a separate regional liquidity pool.
He said customers in the UAE would have access to the same order book and multi-asset infrastructure available in the company’s other markets, operating under Dubai’s regulatory framework.
Embedded Crypto Trading Planned for Regional Partners
Payward also intends to make its trading technology available to financial institutions and other regional partners through embedded trading services.
The model would allow businesses to integrate cryptocurrency trading functionality directly into their own platforms.
Kraken is also considering introducing crypto derivatives and additional yield-related products later in 2026 and during 2027.
However, any expansion into these services would remain subject to further regulatory approvals and is not currently covered by the unrestricted scope of the existing license.
Dubai’s Regulated Crypto Market Continues to Expand
The latest approval expands Payward’s international regulatory footprint, which includes more than 100 licenses and registrations across Europe, the Americas, Asia-Pacific and the Middle East.
Kraken already operates in the European Economic Area under Europe’s Markets in Crypto-Assets regulatory framework.
Dubai, meanwhile, has continued to attract some of the world’s largest cryptocurrency exchanges as its regulated digital asset market develops.
Binance, OKX and Crypto.com are among the major platforms operating under regulatory approvals in the emirate.
VARA’s public register currently lists 58 licensed providers, compared with 49 active firms in May 2026, representing an increase of almost 18% over approximately five months.
| Metric | May 2026 | October 2026 |
|---|---|---|
| VARA-licensed providers | 49 | 58 |
| Payward regulatory status | Preliminary approval | Full VASP license |
Figures are based on VARA public register information cited at the time of reporting.
UAE Sees Wider Institutional Crypto Expansion
Kraken’s Dubai authorization comes amid broader growth in regulated cryptocurrency services across the UAE.
In September, Standard Chartered introduced spot Bitcoin and Ether trading for institutional customers through its Dubai International Financial Centre branch, which operates under the Dubai Financial Services Authority.
In August, trading platform Capital.com also disclosed plans to expand into spot cryptocurrency services in the UAE after its affiliate, Capital Vault, obtained a virtual asset license from the country’s Capital Market Authority.
The presence of regulatory approval routes through VARA, the DFSA and the CMA highlights the UAE’s multi-regulator approach to digital asset services, with different financial institutions able to pursue crypto activities under separate supervisory frameworks.
For exchanges and financial institutions, the growing number of licensed operators is expected to increase competition around liquidity, pricing, institutional execution and customer acquisition.
At the same time, stronger regulatory oversight is raising expectations around areas such as custody, capital requirements, compliance and operational standards.
Attention will now turn to Kraken’s official launch date in the UAE and the rollout of AED deposits, withdrawals and dirham-based trading pairs.
The company has not yet disclosed which AED-denominated spot and margin trading pairs will be available at launch or how quickly its product range could expand following the initial rollout.
