The approval completes VARA's licensing process for Payward in Dubai, following preliminary approval in May 2026 that enabled operational preparations.
Payward, the parent company of Kraken, has obtained Full Market Approval from Dubai’s Virtual Assets Regulatory Authority (VARA), clearing the way for a planned launch of crypto services in the coming weeks, according to an Oct. 12 press release.
The authorization comes a few months after Payward secured preliminary approval from VARA for a broker-dealer, investment and management license. The move allows Payward to operate as a regulated virtual asset service provider for retail, professional and institutional customers.
At launch, users will be able to trade spot and margin products against UAE dirham-denominated pairs, deposit and withdraw dirhams directly, access on-chain staking and xStocks, and use Krak for crypto transfers. Institutional customers will be offered over-the-counter spot trading and Kraken Prime, the company says.
Payward expects to introduce additional services, including crypto derivatives and more yield opportunities, later in 2026 and in 2027, subject to regulatory approval. The company also plans to provide embedded trading infrastructure to regional partners.
The expansion will link UAE customers to Kraken’s global trading infrastructure, including order books serving Europe, the US and Asia-Pacific. Co-CEO Arjun Sethi said the launch would connect UAE customers to Kraken’s existing order book and liquidity.
Dubai is positioning itself as a hub for regulated digital asset activity. The regulatory regime is based on VARA’s Virtual Assets and Related Activities Regulations 2023, updated through Rulebook Version 2.0, which took effect in June 2025.
The combination of regulatory clarity, dirham-based payment infrastructure and institutional-grade services has helped make Dubai attractive to global crypto firms. Its investor classifications allow providers to tailor products to different client groups, while licensed businesses can support trading, custody, settlement and asset management within the VARA framework.
