Kraken has received the final regulatory approval it needs to serve clients in Dubai and plans to open to UAE users in the coming weeks. Its crypto derivatives products, which it offers in other markets, will not be available at launch.
Parent company Payward said the approval from Dubai’s Virtual Assets Regulatory Authority (VARA) lets it operate as a Virtual Asset Service Provider for retail, professional, and institutional investors. Payward said it expects to add crypto derivatives and new yield products later in 2026 and into 2027, subject to regulatory approval.
Payward announced the Full Market Approval on October 12 in a press release distributed through Business Wire. A Virtual Asset Service Provider (VASP) is a company licensed to offer crypto services such as trading, custody, or brokerage.
What Kraken Will Offer at Launch
According to the release, UAE clients will be able to trade spot and margin pairs denominated in UAE dirhams (AED) and deposit and withdraw in dirhams. They will also have access to on-chain staking, xStocks, and Krak, Kraken’s app for sending crypto.
xStocks are tokenized versions of listed equities issued under Payward’s xStocks framework. Institutional clients will get over-the-counter (OTC) spot trading and Kraken Prime, the company’s prime brokerage service.
Payward also said it will make its infrastructure available to regional partners through what it calls embedded trading as a service. That lets other firms offer trading built on Kraken’s systems.
Arjun Sethi, co-CEO of Payward and Kraken, said in the release that UAE clients will trade on the same order book and with the same multi-asset coverage that Kraken runs in its other markets.
How the Approval Fits VARA’s Licensing Process
Full Market Approval is the last stage of VARA’s licensing process. It allows a firm to begin regulated activity in Dubai. It follows the preliminary approval Payward announced on May 21, which allowed the company to finish its operational setup before taking on clients.
In that May announcement, Payward said the Dubai entity is Payward FZCO and that the license category is Broker-Dealer / Investment and Management. VARA regulates virtual asset activity across Dubai, except within the Dubai International Financial Centre (DIFC), which has its own regulator.
ADGM is a separate financial free zone in Abu Dhabi, with its own regulator, the Financial Services Regulatory Authority.
Payward’s Wider Licensing
Payward said it holds more than 100 licenses and registrations across Europe, the Americas, Asia-Pacific, and the Middle East. The company described the UAE launch as part of a strategy to build regulated local operations in major financial centers.
In recent weeks, Payward has also announced a partnership with Singapore Gulf Bank for round-the-clock institutional settlement. It has also announced plans to offer on-chain perpetual futures to U.S. clients, starting with markets on Hyperliquid. Payward has separately said it is targeting perpetual futures on U.S. stocks.
Also Read: Payward Partners With Singapore Gulf Bank for 24/7 USD Settlement
