Crypto exchange Kraken is preparing to launch regulated services in the United Arab Emirates within weeks after its parent company, Payward, secured Full Market Approval from Dubai’s Virtual Assets Regulatory Authority.
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 UAE dirham deposits and withdrawals, and AED-denominated trading pairs.
The approval completes a licensing process that began with preliminary authorization in May 2026, when Payward received permission to establish its regulated operations ahead of the local launch.
Dubai Grants Kraken Full Operating License
Payward FZCO’s regulatory registration confirms an active VASP license issued on October 6, 2026, under reference VL/26/10/002.
The license covers broker-dealer services and 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.
Kraken will connect UAE customers to its existing global trading infrastructure rather than establish a separate regional liquidity pool.
“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 will provide access to Kraken’s international order books while placing locally regulated activities under Dubai’s supervisory framework.
AED Trading, Tokenized Stocks and Staking Planned
Kraken’s initial UAE offering will extend beyond cryptocurrency spot trading.
Eligible customers will gain access to onchain staking, xStocks tokenized equity products and cryptocurrency transfers through Krak. Institutional investors will 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 are scheduled for possible introduction 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 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.
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.
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