Kraken Parent Payward Secures VARA Approval for Full UAE Launch in Dubai

Payward, the parent company of the Kraken exchange, has secured Full Market Approval from Dubai’s Virtual Asset Regulatory Authority (VARA) to launch its financial infrastructure in the UAE. For fintech professionals, this move signals a significant expansion of regulated liquidity into the Middle East, offering institutional and retail investors direct access to dirham-denominated digital asset trading.

What was announced

The approval establishes Payward as a regulated Virtual Asset Service Provider (VASP) in Dubai, marking the final stage of a licensing process that began with preliminary approval in May 2026. This authorization allows the firm to commence regulated activities, including onboarding retail, professional, and institutional investors. The UAE launch is part of a broader effort by Payward to establish on-the-ground operations in key financial centers, connecting new markets to its core trading network.

Upon launch, Kraken clients in the UAE will be able to trade spot and margin markets using AED-denominated pairs. The platform will support direct funding and withdrawals in dirhams, removing the friction of currency conversion for local users. The product suite includes on-chain staking, xStocks, and the Krak service for crypto transfers. Institutional participants will have access to specialized services such as OTC spot trading and the Kraken Prime platform.

Beyond direct consumer and institutional offerings, Payward intends to provide its infrastructure to regional partners through an embedded "trading as a service" model. While the initial launch focuses on spot and margin trading, the company expects to introduce crypto derivatives and an expanded range of new yield opportunities later in 2026 and into 2027, subject to further regulatory clearances. Payward currently holds more than 100 licenses and registrations worldwide, spanning Europe, the Americas, Asia-Pacific, and the Middle East.

"From launch, clients in the UAE get the same order book and multi-asset coverage we run in every other market, under one of the clearest regulatory frameworks in the world. Payward's regulatory infrastructure now connects them directly to Kraken's market-leading liquidity, along with a growing range of opportunities across digital assets."

Arjun Sethi, Co-CEO of Payward and Kraken.

The companies involved

Payward is a unified financial infrastructure platform best known as the parent company of Kraken, one of the world’s longest-standing and most prominent digital asset exchanges. While Kraken operates as the consumer-facing brand for crypto trading, Payward provides the underlying regulatory and technical framework that supports its global operations. The group has established a significant footprint in the market by prioritizing regulatory compliance, holding more than 100 licenses globally to navigate the complex legal landscapes of the Americas, Europe, and Asia-Pacific.

Kraken itself has become a cornerstone of the cryptocurrency ecosystem, known for providing deep liquidity and a wide range of trading pairs. The exchange has historically focused on bridging the gap between traditional finance and digital assets, a mission that Payward facilitates through its infrastructure-heavy approach. By securing Full Market Approval from VARA, Payward positions itself within Dubai’s rapidly maturing fintech sector, competing for market share in a region that has aggressively courted virtual asset firms through the creation of dedicated regulatory bodies like VARA.

What FF News has reported before

FF News has closely followed Payward’s recent efforts to integrate digital asset infrastructure into broader financial services. In October 2026, we reported that Payward and Singapore Gulf Bank Launch 24/7 Institutional Digital Asset Settlement, a partnership designed to streamline cross-border transactions. This followed news in September 2026 that Payward to Launch Regulated Onchain Perpetual Futures for US Clients via Hyperliquid, highlighting the firm's focus on regulated derivatives. Additionally, the company’s infrastructure has been utilized in the travel sector, as seen when Entravel Group Launches Expereon to Unlock $80B in Global Travel Working Capital, leveraging Payward’s settlement capabilities to address liquidity gaps in the industry.

What this means

The UAE’s successful recruitment of a major player like Payward underscores the shifting gravity of the virtual asset industry toward jurisdictions with bespoke regulatory frameworks. While other regions struggle with "regulation by enforcement," Dubai’s VARA provides a clear, stage-gated path that allows firms to build operational readiness before going live. This announcement places significant pressure on other global financial hubs to provide similar clarity or risk losing institutional liquidity to the Middle East. For the broader sector, the move highlights a growing trend where infrastructure providers are no longer just exchanges, but are becoming embedded service layers for regional banks and fintechs.