Key insights
- Direct AED access is the benefit. With Direct AED access UAE customers can use deposits and withdrawals which makes funding simple.
- Payward’s institutional services broaden Payward’s reach. By offering Kraken Prime and over-the‑counter trading Payward extends the service, beyond investors.
- Regulatory approval does not mean product availability will happen away. Regulatory approval is not enough; derivatives and extra yield services still need the permissions.
Kraken parent Payward has secured full regulatory approval from Dubai’s Virtual Assets Regulatory Authority (VARA), clearing the way for its cryptocurrency exchange to enter the United Arab Emirates market in the coming weeks. The authorization allows Payward FZCO to serve retail, professional and institutional investors while expanding regulated digital asset trading in the Gulf.
The approval will help Payward grow in the region. Dubai is becoming a hub for international cryptocurrency companies, which will also benefit Payward. Moreover, direct UAE dirham funding and access to Kraken’s trading infrastructure could help the company compete for customers seeking regulated digital asset services.
Dubai license opens the door to UAE customers
VARA granted Payward FZCO its virtual asset service provider license on October 6, according to the regulator’s public register. The approval ends a licensing journey that started with an authorization in May 2026.
That first clearance enabled Payward to build its operations and ready itself, for market entry. However, the company needed full regulatory approval before onboarding customers and providing the authorized services.
Now, Kraken parent Payward can prepare to introduce its platform to eligible UAE customers. The company has not announced an exact launch date, although it expects operations to begin within the coming weeks.
At launch, customers will access cryptocurrency spot and margin trading through UAE dirham-denominated pairs. They will also be able to deposit and withdraw AED directly, reducing the need to convert local currency elsewhere before trading.
Payward co-CEO Arjun Sethi said UAE customers would access the company’s existing order book and multi-asset coverage. This arrangement connects local users to Kraken’s broader trading infrastructure and liquidity network.
Trading services target retail and institutional investors
The initial offering will cover several customer segments, with services tailored to different trading requirements. Retail investors and professional investors will get access, to trading products that have been approved. Institutional clients will get choices for how to carry out their trades.
The planned services include:
- Spot and margin trading of cryptocurrency using AED‑denominated pairs is now available.
- Direct deposits and withdrawals can be made in UAE dirhams.
- Over-the-counter spot trading is available and institutional clients can access Kraken Prime.
- On-chain staking, supported crypto transfers through Krak and tokenized equities through xStocks.
Kraken Prime provides institutional market participants with trading and liquidity services. Meanwhile, xStocks provides blockchain exposure to supported stocks and exchange-traded funds (ETFs) (as appropriate per jurisdiction).
Embedded services will also be offered to regional businesses as Payward plans to make its trading infrastructure accessible to them. This approach may enable the financial companies to incorporate cryptocurrency trading into their very own purchaser-visible merchandise.
However, the company has not disclosed every asset or product that UAE customers will receive. Individual services remain subject to applicable regulatory permissions and local restrictions.
Dubai’s crypto market faces growing competition
The approval comes as Dubai continues expanding its regulated digital asset sector. VARA’s public register lists 58 licensed providers, compared with 49 active companies in May 2026.
Kraken parent Payward therefore enters an established market where international exchanges already operate under local regulatory permissions. Crypto.com secured VARA authorization, for exchange and broker‑dealer services in November 2023. Binance Dubai obtained license in April 2024.
Other financial companies are also pursuing opportunities across the UAE. In September, Standard Chartered introduced spot Bitcoin and Ether trading for institutional clients through its Dubai International Financial Centre branch.
That operation falls under the Dubai Financial Services Authority rather than VARA. In August, Capital.com also outlined plans for UAE crypto services after its affiliate, Capital Vault, secured authorization from the country’s Capital Market Authority.
These developments show how different regulatory frameworks support competing digital asset businesses across the country. For Payward, local approval provides a route to customers who may prefer providers operating under established supervision.
Expansion plans extend beyond initial trading
Payward plans to launch cryptocurrency derivatives and other yield products in late 2026 and 2027, respectively, on a regulatory basis. The company has not announced specific agreements or launch dates for the services.
The phased approach enables Payward to develop its initial trading operations and then build on that. However, derivatives and yield offerings will need the necessary permissions before they can be accessed by customers.
The company also brings an international licensing network to its UAE expansion. Payward says it holds more than 100 licenses and registrations worldwide, supporting its operations across several major markets.
Conclusion
Kraken parent Payward has cleared Dubai’s licensing hurdle and can now prepare for its UAE launch. Direct dirham funding, spot trading, margin trading and institutional services are the things that Kraken will offer. I think this is a step for Kraken.
However competition from established exchanges and traditional banks will shape Kraken’s future. Kraken’s longer‑term growth will also depend on approvals, for derivatives and other yield products.
