Key Points
- Payward, the parent company of Kraken, received full market approval from Dubai’s Virtual Assets Regulatory Authority to expand its digital asset services in the UAE.
- The planned launch will enable eligible clients to access spot and margin trading in UAE dirham-denominated pairs, alongside direct deposits and withdrawals.
- Dubai’s licensed virtual asset provider count has increased to 58, reflecting continued growth in the UAE’s regulated cryptocurrency market.
Payward Secures Full Regulatory Approval in Dubai
Payward, the parent company of cryptocurrency exchange Kraken, has cleared a major regulatory hurdle in the United Arab Emirates after receiving full market approval from Dubai’s Virtual Assets Regulatory Authority (VARA). The authorization positions the company to expand its services to retail, professional and institutional investors in the country.
The approval follows preliminary authorization granted in May 2026 and brings Payward closer to launching its UAE trading operations. The company said it is targeting a rollout in the coming weeks.
According to VARA’s public register, the regulator issued a virtual asset service provider license to Payward FZCO on October 6. The license permits the entity to provide management and investment services as well as broker-dealer services.
The development strengthens Kraken’s efforts to establish a regulated presence in the Gulf, where financial institutions and cryptocurrency platforms are increasingly pursuing licenses to serve regional demand.
UAE Dirham Trading to Expand Local Market Access
At launch, Kraken clients in the UAE are expected to gain access to spot and margin trading through UAE dirham-denominated trading pairs. The service will also support direct deposits and withdrawals, giving customers a local-currency route into the exchange’s digital asset markets.
The availability of dirham trading could make cryptocurrency transactions more accessible to UAE-based customers by reducing reliance on other currencies or additional conversion steps. However, the company has not specified the complete list of trading pairs that will be available at launch.
Payward’s approval also allows it to serve different investor segments, including retail customers, professional traders and institutions. This broad authorization could help the company compete for business across the UAE’s expanding digital asset market.
The launch remains a forward-looking plan, with the company indicating that services are expected to become available in the coming weeks rather than confirming that trading has already begun.
Dubai’s Licensed Crypto Sector Continues to Grow
VARA’s public registry lists 58 licensed providers, compared with 49 active companies in May 2026. The increase highlights the continued expansion of Dubai’s regulated virtual asset sector as international exchanges and financial services companies seek authorization to operate locally.
The UAE’s regulatory landscape also extends beyond Dubai’s VARA framework, with other financial authorities overseeing digital asset services in separate jurisdictions.
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, trading platform Capital.com announced plans to offer spot cryptocurrency services to UAE clients after its affiliate, Capital Vault, secured a virtual asset license from the country’s Capital Market Authority.
These developments illustrate how banks, brokers and cryptocurrency exchanges are pursuing different regulatory pathways to serve demand for digital assets in the region. For market participants, the expansion of licensed services could broaden access while placing greater emphasis on regulatory compliance and operational oversight.
Outlook
Payward’s full approval from VARA marks a significant step toward Kraken’s planned UAE launch, particularly through the introduction of dirham-denominated trading and local payment functionality. The company’s ability to attract customers will depend on its final product offering, launch execution and competition from established financial institutions and other licensed digital asset platforms.
As the UAE’s regulated cryptocurrency sector grows, licensing, local-currency access and institutional participation are likely to remain important factors shaping competition across the market. The next milestone for Payward will be the commencement of trading services and confirmation of the products available to UAE customers.
Comparison, examination, and analysis between investment houses
Leave your details, and an expert from our team will get back to you as soon as possible
