Payward, the parent company of cryptocurrency exchange Kraken, has obtained full regulatory approval in Dubai, clearing the way for its expansion into the United Arab Emirates. The authorization from Dubai's Virtual Assets Regulatory Authority (VARA) enables the firm's local subsidiary to offer regulated cryptocurrency services to retail, professional, and institutional customers.

According to Kraken's official announcement, the approval completes a licensing process that began with preliminary regulatory clearance in May 2026, a two-stage route in which preliminary recognition precedes the full authorization needed to serve customers. Payward can now prepare to launch its UAE operations, with the company targeting the coming weeks for the rollout.

The move strengthens Kraken's foothold in the Middle East at a time when competition among cryptocurrency platforms is intensifying. It also gives UAE customers access to trading services connected to Kraken's global liquidity network.

Dubai License Opens Door to Local Crypto Trading

Under the authorization, Kraken plans to provide spot and margin trading through cryptocurrency pairs denominated in UAE dirhams. Customers will also be able to deposit and withdraw dirhams directly, offering a local funding channel for accessing digital asset markets. Dirham-denominated pairs are less common in global crypto trading, where most volume is quoted against the US dollar or dollar-pegged stablecoins, making the home-currency setup the practical entry point for local customers.

The initial offering spans several services tailored to different customer segments:

• Spot and margin cryptocurrency trading using UAE dirhams
• Onchain staking services for eligible digital assets
• Over-the-counter trading for larger transactions
• Institutional services through Kraken Prime
• Crypto transfers between users through Krak
• Access to tokenized equities through the xStocks platform

The availability of individual products will depend on applicable regulatory conditions, and retail customers may face different product restrictions than professional and institutional investors.

Payward's local subsidiary will operate within Dubai's regulatory framework, placing its UAE activities under the supervision of VARA.

Further Expansion Depends on Regulatory Approval

Payward's UAE push follows Dubai's broader effort to build a regulated environment for digital asset businesses. The emirate has introduced a dedicated licensing framework for virtual asset service providers, creating a formal pathway for exchanges and other crypto companies to serve local customers. VARA was established in 2022 as the emirate's dedicated virtual assets regulator, and the framework has since been a key reason the city continues to attract international digital asset firms seeking a supervised base for the region.

For Kraken, the license presents an opportunity to compete for retail trading activity and institutional business in a market that continues to attract digital asset firms. The company also plans to broaden its UAE product lineup over time, with crypto derivatives and additional yield-related products potentially following in late 2026 and 2027, subject to further regulatory approval, making subsequent regulatory sign-offs a key item to track as the rollout progresses.

The license does not eliminate the financial risks associated with cryptocurrency trading. Digital assets remain volatile, and customers must weigh the potential for losses when using trading, staking, or other investment services.

Payward has said it holds more than 100 licenses and registrations worldwide, reflecting a strategy of expanding through regulated operations. The Dubai approval adds another market to that international footprint and positions Kraken to build a more direct relationship with customers across the UAE.