Kraken Parent Payward Secures VARA Approval to Launch Crypto Services in the UAE
Key Takeaways
- •Payward FZCO received a full VASP license from VARA on Oct. 6, authorizing broker-dealer, management, and investment services in Dubai.
- •Kraken is targeting a UAE launch in the coming weeks, offering spot and margin trading in AED-denominated pairs along with direct deposits and withdrawals.
- •The full approval follows preliminary approval in May 2026, a period during which VARA's registry grew from 49 to 58 licensed providers.
- •Other firms are entering the UAE through separate regulatory routes, including Standard Chartered's institutional Bitcoin and Ether trading via its DIFC branch and Capital.com's planned spot crypto services after its affiliate obtained a CMA license.
- •Nasdaq has reportedly invested $100 million in Payward, Kraken's parent company, at a $21 billion valuation.
Payward, the parent company of cryptocurrency exchange Kraken, has received approval from Dubai's Virtual Assets Regulatory Authority (VARA) to offer crypto services through its local entity, Payward FZCO, clearing the way for the exchange's launch in the United Arab Emirates (UAE).
Per the official announcement, issued on Monday, Kraken's clients in the UAE will be able to access spot and margin trading in UAE dirham (AED)-denominated pairs and make direct deposits and withdrawals once services begin. The company said it is targeting a launch in the coming weeks, with the exact go-live date still to be confirmed.
VARA's public register shows that the regulator issued Payward FZCO a virtual asset service provider (VASP) license on Oct. 6, enabling it to provide management and investment services as well as broker-dealer services. Payward said the approval allows it to serve retail, professional and institutional investors, and follows its preliminary approval in May 2026. The roughly five-month progression from preliminary to full market approval coincided with growth in Dubai's licensed cohort: VARA's registry currently lists 58 licensed providers, up from 49 active companies in May 2026.
That expansion is unfolding alongside growth under the UAE's other regulatory regimes, which give banks and brokers separate routes into the market. In September, Standard Chartered launched spot Bitcoin and Ether trading for institutional clients in the UAE through its Dubai International Financial Centre branch, which is regulated by the Dubai Financial Services Authority. In August, Capital.com revealed plans to offer spot crypto services to clients in the UAE after its affiliate, Capital Vault, secured a virtual-asset license from the country's Capital Market Authority (CMA).
The exchange has also drawn reported backing from traditional finance: Nasdaq has reportedly invested $100 million in Kraken's parent company at a $21 billion valuation.
