Kraken’s Parent Clears Last Dubai Step to Launch Dirham Trading

Kraken’s parent company, Payward, has secured regulatory approval in Dubai to bring fully licensed crypto services to the United Arab Emirates. The Virtual Assets Regulatory Authority (VARA) authorized Payward FZCO to provide crypto services under its local licensing framework, clearing the way for a broader UAE rollout than previously available.

Payward said that at launch, Kraken clients in the UAE will be able to trade spot and margin products using UAE dirham (AED)-denominated pairs and withdraw funds directly in AED. The company is targeting a launch in the coming weeks.

Key takeaways

• VARA approval: Payward FZCO received a VASP license on Oct. 6, allowing it to offer virtual asset services in Dubai.
• Kraken features at launch: UAE customers will be able to access spot and margin trading in AED pairs and make direct AED withdrawals.
• Retail and institutional coverage: Payward said the approval covers service provision to retail, professional, and institutional investors.
• License and prior progress: The move follows Payward’s preliminary approval from VARA in May 2026.

VARA license clears the way for Payward FZCO

According to VARA’s public register, the regulator issued Payward FZCO a virtual asset service provider (VASP) license on Oct. 6. The registration indicates that the license enables Payward FZCO to provide management and investment services, as well as broker-dealer services.

Payward stated that the approval expands its ability to serve a range of clients, from retail users to professional and institutional investors. The company also positioned the authorization as the final step toward operating more directly under Dubai’s virtual asset regime.

The regulator’s grant builds on an earlier milestone: Payward had received preliminary approval in May 2026, which suggested VARA was already engaging the company before authorizing full operations.

What Kraken customers in the UAE will get

In its announcement, Payward said Kraken’s UAE offering at launch will include spot trading and margin trading using AED-denominated pairs. It also highlighted direct deposit withdrawals, allowing customers to withdraw in UAE dirham without relying on third-party routing.

For users, the shift matters because it aligns account funding and withdrawals with the local fiat currency—an element that can reduce friction for customers who prefer to interact with crypto markets in their domestic currency. For traders, the availability of AED-quoted pairs can also make it easier to manage exposure and risk, particularly when margin is involved.

Payward did not provide additional product details in the coverage, but it did state that the launch is expected “in the coming weeks,” placing emphasis on near-term market availability rather than a distant roadmap.

Dubai’s VASP licensing market keeps expanding

VARA’s public register lists 58 licensed providers at the time of reporting—up from 49 active companies in May 2026. That increase underscores how Dubai’s licensing pipeline has continued to broaden as firms work through the regulator’s requirements.

In practical terms, more licensed providers can translate into stronger competition for liquidity, custody and execution quality, and on-ramp/off-ramp services. It may also help customers find multiple regulated pathways to access crypto markets—especially when exchanges and trading platforms emphasize fiat rails and local currency withdrawals.

Payward’s approval also places Kraken’s UAE plans within a wider regulatory ecosystem: other firms have been pursuing approvals across different UAE frameworks, suggesting a market where compliance pathways are diversifying rather than converging into a single model.

Banks and trading platforms press ahead under UAE rules

The broader pace of regulated crypto expansion in the UAE is not limited to exchange licensing. Earlier coverage highlighted Standard Chartered’s move to offer spot Bitcoin and Ether trading for institutional clients in the UAE through its Dubai International Financial Centre branch, under regulation by the Dubai Financial Services Authority.

Separately, trading platform Capital.com has described plans to deliver spot crypto services to UAE clients after its affiliate, Capital Vault, secured a virtual-asset license from the country’s Capital Market Authority (CMA). The existence of approvals across both VARA and the CMA framework suggests that different types of financial intermediaries are finding routes to offer crypto exposure, depending on licensing scope.

While these developments involve distinct regulators and business models, they collectively reinforce the UAE’s approach of expanding crypto access under defined oversight—an approach that may influence how quickly institutions and larger counterparties consider integrating crypto trading into existing workflows.

As Payward targets a UAE launch in the coming weeks, investors and users should watch for the exact timing of Kraken’s go-live, the specific AED-quoted spot and margin pairs offered initially, and whether the product mix expands after the first phase. The remaining uncertainty is how quickly liquidity and client onboarding scale once trading begins under VARA’s full approval.