Kraken has secured regulatory approval to enter Dubai's cryptocurrency market. On October 12, Payward, the parent company of the exchange, received Full Market Approval from Dubai's Virtual Assets Regulatory Authority (VARA) to operate as a licensed Virtual Asset Service Provider.
The authorization follows preliminary approval granted in May 2026, which allowed Payward to build local infrastructure and prepare operations. With the licensing process complete, Kraken can proceed with its planned UAE launch.
Services and Market Access
Kraken will offer spot and margin trading pairs denominated in AED, enabling UAE residents to deposit and withdraw funds in local currency. The platform will also provide onchain staking, tokenized equities through xStocks, and cryptocurrency transfers via Krak. Institutional clients will have access to OTC spot trading and Kraken Prime services.
According to Arjun Sethi, co-CEO of Payward and Kraken, UAE clients will use the exchange's existing trading infrastructure, maintaining access to the same order book and multi-asset coverage available across all markets. Payward plans to launch cryptocurrency derivatives and yield products later this year and into 2027, pending additional regulatory approvals.
Market Competition
Kraken's entry joins other major cryptocurrency exchanges operating in Dubai and the UAE. Binance received its full Dubai license in April 2024, while Crypto.com's Dubai branch obtained permission for exchange and broker-dealer operations in November 2023. Bybit received a platform operator's license from the UAE's federal Securities and Commodities Authority in October 2025.
Payward also plans to provide trading infrastructure to financial partners, allowing companies to integrate its services into existing platforms.
