Payward, the parent company of cryptocurrency exchange Kraken, has secured full regulatory approval in Dubai, clearing a major hurdle in its planned expansion into the United Arab Emirates (UAE). The approval from Dubai’s Virtual Assets Regulatory Authority (VARA) allows the company to prepare for serving retail, professional, and institutional investors under the emirate’s regulatory framework.
Announced on Monday (October 12, 2026), the approval follows preliminary clearance granted in May. Payward expects to begin serving UAE customers in the coming weeks, although it has not announced a specific launch date.
UAE Customers to Get Direct Dirham Trading
The initial rollout will allow Kraken customers in the UAE to trade cryptocurrencies through spot and margin markets using pairs denominated in UAE dirhams (AED). Customers can also deposit and withdraw funds directly in the local currency.
The move could simplify access for regional users by reducing the need to convert dirhams into another currency before funding their accounts. Spot trading involves buying or selling assets directly, while margin trading allows users to borrow funds to increase their market exposure, potentially magnifying both gains and losses.
Other planned services include on-chain staking, tokenized equities through xStocks, and Krak for cryptocurrency transfers. The availability of individual products will depend on the applicable regulatory permissions.
Institutional Investors Also in Focus
Payward’s expansion is not limited to individual traders. Institutional customers will have access to over-the-counter (OTC) spot trading and Kraken Prime, the company’s platform for professional trading and liquidity services.
OTC transactions allow large investors to execute trades directly rather than placing every order on a public exchange. This can help institutions manage large transactions and their potential market impact.
The company also plans to make its trading infrastructure available to regional businesses through embedded trading services. This would allow partners to integrate cryptocurrency trading capabilities into their own financial products instead of building the entire infrastructure independently.
Also Read: Coinbase vs Kraken: Fees, Features, Crypto Trading Options Compared
More Crypto Products Planned as Dubai Expands Regulation
Payward expects to introduce cryptocurrency derivatives and additional yield products later in 2026 and into 2027, subject to further regulatory approvals. These services are not part of an unconditional launch commitment.
The approval marks another step in Dubai’s effort to develop a regulated digital-asset market. VARA oversees virtual-asset activities across Dubai, excluding the Dubai International Financial Center, and maintains a licensing framework for businesses operating in the sector.
Payward said it holds more than 100 licenses and registrations worldwide. The latest approval strengthens its presence in the Middle East and positions Kraken to compete for regional retail and institutional crypto customers. The next milestone will be the start of UAE operations and the rollout of services permitted under its license.