Kraken Secures Full Market Approval in UAE, Expanding Global Reach
Kraken’s parent company, Payward, has officially received Full Market Approval from Dubai’s Virtual Assets Regulatory Authority (VARA) for its subsidiary, Payward FZCO. This significant development, granted on October 12, 2026, paves the way for Kraken to commence serving clients in the United Arab Emirates within the coming weeks, offering a range of services including trading, staking, and transfers.
VASP Classification and Client Scope
The approval designates Payward as a Virtual Asset Service Provider (VASP), categorizing it under broker-dealer, investment, and management services. This comprehensive license extends to retail, professional, and institutional clients, meaning both individual users and large corporations can engage with Kraken’s offerings from the outset.
Initial Service Offerings
Upon launch, clients in the UAE will have the ability to execute spot and margin trades on currency pairs denominated in the UAE dirham (AED). Spot trading involves the direct purchase and sale of assets, while margin trading allows users to borrow funds to amplify their position size, thereby increasing potential gains and losses.
Furthermore, clients will gain access to on-chain staking, a process where users lock up specific tokens to support blockchain network security, typically in exchange for rewards. Kraken’s local entity will also facilitate direct funding and withdrawals in dirhams, streamlining financial operations for its UAE-based clientele.
Institutional Services and Global Liquidity
Kraken is also targeting institutional investors with its Kraken Prime service, which will provide access to over-the-counter (OTC) trading and other advanced services. OTC desks are designed to handle large trades privately, preventing significant market price fluctuations before a transaction is completed. Kraken asserts that these institutional clients will benefit from deep liquidity sourced from its extensive global order books, which span Europe, the United States, and the APAC region.
Regulatory Timeline and Future Ambitions
The path to full approval involved a preliminary green light from VARA on May 21, 2026, approximately five months prior to the final authorization. While the initial launch will feature a defined set of services, Payward has outlined plans to introduce additional offerings, including derivatives and yield products, throughout 2026 and 2027. These future expansions are contingent upon securing further regulatory approvals from VARA.
Dubai has been actively positioning itself as a regulated hub for digital assets. VARA, established in 2022, is tasked with overseeing virtual asset activities within the emirate, excluding those within the Dubai International Financial Centre (DIFC). The authority maintains a public registry of licensed virtual asset service providers.
With this latest approval, the UAE joins the more than 100 jurisdictions globally where Payward holds licenses, bringing Kraken’s operations under local regulatory supervision.
