Crypto exchange Kraken is preparing to roll out regulated services in the United Arab Emirates within weeks, after its parent company, Payward, received Full Market Approval from Dubai's Virtual Assets Regulatory Authority (VARA).

The authorization allows Payward FZCO to operate as a licensed Virtual Asset Service Provider (VASP) serving retail, professional and institutional investors. Kraken plans to introduce spot and margin trading, direct deposits and withdrawals in UAE dirhams, and trading pairs denominated in the AED.

The approval completes a licensing process that began in May 2026, when Payward obtained preliminary authorization to establish its regulated operations in Dubai ahead of the local launch.

Dubai Grants Kraken Full Operating License

Payward FZCO's registration in VARA's public register confirms an active VASP license issued on October 6, 2026, under reference VL/26/10/002.

VARA, established in 2022 as Dubai's dedicated regulator for virtual asset activities, runs a staged licensing framework in which firms must clear preliminary requirements before serving customers. The license covers broker-dealer services as well as management and investment services. It represents the final stage of VARA's authorization process, replacing the preliminary approval that permitted operational preparation but not regulated customer activity.

Rather than building a separate regional liquidity pool, Kraken will connect UAE customers to its existing global trading infrastructure.

"From launch, clients in the UAE get the same order book and multi-asset coverage we run in every other market," said Arjun Sethi, co-CEO of Payward and Kraken.

The arrangement gives UAE users access to Kraken's international order books while placing locally regulated activities under Dubai's supervisory framework. The company announced the approval in a press release.

AED Trading, Tokenized Stocks and Staking Planned

Kraken's initial UAE offering will extend beyond spot cryptocurrency trading. Eligible customers will gain access to onchain staking, xStocks tokenized equity products, and cryptocurrency transfers through Krak, the company's payments app. Institutional investors will additionally receive over-the-counter spot execution and access to Kraken Prime.

Direct AED funding and withdrawals will allow local customers to move between dirhams and supported digital assets without first converting their balances into another fiat currency.

Payward also intends to provide embedded trading infrastructure to regional financial partners, allowing businesses to integrate trading services through its platform.

Crypto derivatives and additional yield products may be introduced later in 2026 and during 2027, subject to further regulatory authorization. They are not part of the current approval's unrestricted product scope.

Kraken Expands Its Global Regulatory Footprint

The Dubai license adds to Payward's international regulatory network, which now includes more than 100 licenses and registrations across multiple jurisdictions.

Kraken already operates across the European Economic Area under the Markets in Crypto-Assets (MiCA) framework, where its regulated exchange liquidity has supported its institutional trading presence.

Dubai is also home to licensed operations from Binance, OKX, Crypto.com and other major digital-asset firms, placing Kraken in an established regional market for regulated cryptocurrency services. With its license now active, Kraken joins a field of established exchanges operating under the same supervisory framework.

Kraken has not disclosed an exact UAE launch date. Customer onboarding is expected to begin in the coming weeks, with the initial rollout covering eligible retail and institutional clients under Payward FZCO's newly active license. Whether VARA grants the further authorizations required for derivatives and yield products will shape the scope of the exchange's offering in the emirate over the next two years.

Source: Crypto Adventure