Payward (Kraken) secures full VARA approval in Dubai. Learn about upcoming AED trading pairs, on-chain staking, and tokenised equities for UAE investors.
Key Takeaways
- Payward has received full market approval from Dubai’s VARA, allowing Kraken to offer crypto services in the UAE.
- UAE users can trade directly in AED, with features like direct funding and on-chain staking available at launch.
- Payward plans to expand its offerings, including cryptocurrency derivatives and yield products by late 2026 to 2027, pending regulatory approvals.
- The UAE market distinguishes itself with a structured licensing framework, aiming to become a leading digital asset hub.
- Kraken’s operations benefit from local supervision, ensuring compliance and security for users in the UAE.
Payward, the parent company of the global cryptocurrency exchange Kraken, has secured full market approval from Dubai’s Virtual Assets Regulatory Authority (VARA). This regulatory green light allows the company to launch a suite of crypto trading and financial services specifically tailored for retail, professional, and institutional investors within the United Arab Emirates.
Kraken’s regulated entry into the UAE market
The transition from preliminary clearance to Full Market Approval marks a significant shift for Payward’s regional operations. While the company previously received preliminary authorisation in May 2026, this latest approval from VARA permits the firm to operate as a regulated Virtual Asset Service Provider (VASP) and begin the formal process of onboarding clients under the emirate’s licensing framework.
For users, this means the platform will operate under one of the world’s most defined regulatory environments. Arjun Sethi, co-CEO of Payward and Kraken, noted that clients in the UAE will access the same order book and multi-asset coverage used in other global markets, but with the added layer of local supervision provided by Dubai’s framework.
What UAE investors can expect at launch
The most immediate practical benefit for UAE residents is the integration of the local currency. Unlike platforms that require users to convert funds into a secondary fiat currency before trading, Kraken’s UAE offering will support direct UAE dirham (AED) functionality.
Key features available at the initial rollout include:
- AED-denominated trading: Customers can trade spot and margin pairs using AED. While the specific list of cryptocurrencies available for these AED pairs has not yet been disclosed, the ability to trade without external conversion is a major utility for local liquidity.
- Direct funding: The platform will support direct AED deposits and withdrawals.
- On-chain staking: Users will have access to staking services directly on the blockchain.
- Tokenised equities: Through its xStocks platform, users can gain blockchain-based exposure to various shares and exchange-traded funds (ETFs).
- Institutional services: Professional and institutional clients will have access to over-the-counter (OTC) spot trading and Kraken Prime, which provides high-level liquidity and trading infrastructure.
Payward also intends to make its trading infrastructure available to other regional businesses through embedded trading services, allowing partners to integrate these capabilities into their own financial products.
The roadmap: Derivatives and yield products
While the initial launch focuses on spot trading and tokenised assets, the full scope of Payward’s service offering will expand over the coming years. The company has outlined a long-term roadmap that includes the introduction of cryptocurrency derivatives and additional yield products.
These advanced financial instruments are expected to arrive in late 2026 and throughout 2027, though their release remains strictly subject to obtaining further specific regulatory approvals from the relevant authorities.
Context: Dubai’s growing crypto regulatory landscape
Payward’s entry follows a broader trend of global crypto entities seeking formalised status within the UAE. This move follows Kraken’s earlier efforts in the region, including receiving approval from the Abu Dhabi Global Market (ADGM) in 2022 to offer AED-based access to virtual assets.
Dubai’s VARA has been actively issuing licences to various players to consolidate the emirate’s position as a digital asset hub. For instance, in August, Flowdesk received full broker-dealer authorisation for its Dubai entity. This structured approach to licensing distinguishes the UAE market from jurisdictions operating under offshore or unregulated models, providing a clear legal framework for both service providers and investors.
