Kraken is preparing to launch its crypto services in the UAE after receiving full market approval from Dubai’s Virtual Asset Regulatory Authority (VARA).
The approval paves the way for its parent company, Payward, to operate as a regulated virtual asset service provider in Dubai. The company will be able to serve individual, professional and institutional investors in the region.
Kraken launches in the United Arab Emirates
Initially, UAE customers will have access to spot and margin trading, with trading pairs denominated in UAE Dirham (AED). Users will also be able to deposit and withdraw funds directly in dirhams. They may no longer need to rely on other currencies to finance their trading activities.
The launch range will also be include on-chain staking, xStocks and Krak, Kraken’s service for crypto transfers. Institutional clients will have access to over-the-counter (OTC) spot trading and Kraken Prime. The company also plans to introduce more products over time.
For example, crypto derivatives and a wider range of yield opportunities are expected to arrive later in 2026 and 2027. However, these services will be dependent on additional regulatory approval. Payward also plans to offer its trading infrastructure to regional partners through an integrated trading-as-a-service model.
The final approval is the final step in the VARA licensing process. This follows the preliminary approval granted to Payward in May 2026, which allowed the company to complete its operational setup before onboarding customers. Payward currently holds over 100 licenses and registrations worldwide. Its regulatory footprint spans Europe, the Americas, Asia Pacific and the Middle East.
Commenting on the development, Arjun Sethi, Co-CEO of Payward and Kraken, said:
“From launch, UAE clients benefit from the same order book and multi-asset coverage we manage in every other market, within one of the clearest regulatory frameworks in the world. Payward’s regulatory infrastructure now connects them directly to Kraken’s market-leading liquidity, as well as a growing range of digital asset opportunities.”
Other major offers
Kraken has had a busy year. Deutsche Börse kicked things off in April with a $200 million investment in the crypto exchange. In June, Kraken partnered with Maple to bring institutional-style lending protections to the blockchain through a digital asset-backed lending facility.
Then along came Nasdaq in September, which agreed to invest an additional $100 million in Payward. This deal valued the parent company at $21 billion. The two entities are also working on tokenized stocks, and a launch is planned for the second quarter of 2027.
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