Kraken Wins Final VARA Approval to Launch UAE Crypto Services

Kraken is preparing to launch its cryptocurrency trading services in the United Arab Emirates after its parent company, Payward, secured Full Market Approval from Dubai’s Virtual Assets Regulatory Authority (VARA).

The approval authorizes Payward to operate as a regulated virtual asset service provider in Dubai, serving retail, professional and institutional clients.

The company said Kraken expects to begin onboarding UAE customers in the coming weeks, opening access to its trading infrastructure and digital asset services within one of the region’s established virtual asset regulatory frameworks.

At launch, users will be able to trade spot and margin markets with dirham-denominated trading pairs, while depositing and withdrawing funds directly in UAE dirhams. The initial offering will also include on-chain staking, tokenized equities through xStocks and Krak, Payward’s crypto transfer service.

Institutional clients will have access to over-the-counter (OTC) spot trading and Kraken Prime, the company’s platform for institutional digital asset services. The offering will extend Kraken’s services beyond individual traders to professional market participants seeking access to liquidity, trading and other digital asset infrastructure.

Kraken Brings Dirham Trading and Institutional Services to the UAE

A central feature of the planned launch is the ability to trade through AED-denominated pairs and fund accounts directly in local currency. This will allow eligible UAE customers to access Kraken’s markets without relying exclusively on foreign-currency funding routes.

The launch will connect local users to Kraken’s existing trading infrastructure, including its order books and liquidity across multiple digital assets.

According to Arjun Sethi, co-CEO of Payward and Kraken, the company intends to offer UAE customers the same core trading infrastructure and multi-asset coverage available across its other markets, operating under Dubai’s regulatory framework.

Beyond direct trading services, Payward plans to make its infrastructure available to regional businesses through embedded trading services. This model would allow partners to integrate trading capabilities into their own platforms rather than build an entire digital asset trading system independently.

The company also intends to introduce additional products, including crypto derivatives and a broader range of yield-related offerings, later in 2026 and into 2027. Their availability will depend on obtaining the necessary regulatory approvals.

VARA Approval Completes Kraken’s Dubai Licensing Process

Full Market Approval represents the final stage of VARA’s licensing process and allows Payward to begin regulated operations in Dubai within the scope of its authorization.

The approval follows preliminary clearance granted in May 2026, which enabled the company to complete its operational preparations before onboarding customers. The latest authorization therefore marks the transition from preparing its UAE business to launching services for local clients.

Dubai has established a dedicated regulatory framework for virtual asset businesses through VARA, which oversees activities involving virtual assets within its jurisdiction, subject to applicable exclusions and the separate regimes governing other financial free zones. For international exchanges, obtaining the required authorization is an important step toward serving customers within that framework.

Payward’s approval also comes as the company continues to expand its regulated presence across major financial markets. According to the company, it holds more than 100 licenses and registrations worldwide, covering Europe, the Americas, Asia-Pacific and the Middle East.

Kraken Expands Its Regional Digital Asset Strategy

The UAE launch forms part of Payward’s broader effort to connect local markets to its global trading network while establishing regulated operations in key financial centers.

For Kraken, the planned offering combines several elements: local-currency funding, spot and margin trading, staking, tokenized equities and dedicated services for institutional clients. The company is also positioning its infrastructure as a potential resource for regional businesses seeking to incorporate digital asset trading into their own products.

The planned expansion comes with a phased approach to product availability. While the initial services are expected to become available in the coming weeks, derivatives and additional yield-related products remain subject to future regulatory approval.

Kraken’s entry into the UAE will therefore depend not only on its ability to attract local customers, but also on how it develops its product range within the permissions granted by VARA.

Full Market Approval establishes the regulatory basis for its Dubai operations, while the coming launch will determine how the company’s global trading and institutional services translate into the local market.