Kraken Parent Company Secures Full Regulatory Approval for UAE Digital Asset Platform

Payward, the parent company of cryptocurrency exchange Kraken, has received full market approval from Dubai’s Virtual Assets Regulatory Authority (VARA) to launch comprehensive digital asset trading services throughout the United Arab Emirates. The regulatory breakthrough came on October 6, 2026, when VARA issued a complete virtual asset service provider (VASP) license to Payward FZCO. This approval represents the culmination of several months of regulatory engagement, following preliminary authorization granted in May 2026, and positions the global crypto exchange to serve retail, professional, and institutional investors across the UAE market.

Dirham-Denominated Trading Enables Local Market Integration

Kraken’s official UAE launch is targeted for the coming weeks, bringing a major international exchange’s full trading capabilities to local investors for the first time. The platform will support spot trading and margin trading in UAE dirham (AED)-denominated cryptocurrency pairs, eliminating the friction and costs associated with currency conversion that have historically complicated crypto trading for local market participants. Users will also be able to make direct deposits and withdrawals using AED, streamlining the onboarding process and reducing barriers to participation.

The VASP license granted by VARA encompasses far more than basic trading services. Payward’s authorization explicitly includes the ability to provide digital asset management services, investment services, and broker-dealer capabilities. This comprehensive regulatory scope positions Kraken as a full-service platform capable of serving the entire spectrum of market participants from individual retail traders to sophisticated institutional investors.

A Rapidly Expanding Regional Crypto Ecosystem

Payward’s achievement reflects broader momentum in the UAE’s cryptocurrency regulatory environment. According to VARA’s official register, the authority now oversees 58 licensed digital asset service providers as of October 2026, representing substantial growth from the 49 active providers documented in May. This expansion reflects genuine market demand and the regulatory authority’s demonstrated effectiveness in attracting major international firms.

Kraken is not alone in recognizing opportunity in the UAE market. Traditional financial institutions have begun integrating crypto services at an accelerated pace. Standard Chartered launched spot Bitcoin and Ether trading for institutional clients in September through its Dubai International Financial Centre operations, while trading platform Capital.com announced plans to offer spot crypto services to UAE clients following its affiliate Capital Vault’s successful acquisition of a regulatory license from the local Capital Market Authority.

Kraken’s UAE expansion demonstrates how major global crypto exchanges can successfully navigate jurisdictions with sophisticated regulatory frameworks, creating pathways for XRP and other digital assets to access institutional and retail liquidity in strategically important financial hubs.

Source: VARA, via Cointelegraph. Not financial advice.