Kraken plans UAE launch with dirham trading after VARA approval

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Kraken plans UAE launch

Highlights

Kraken receives full regulatory approval in Dubai.
UAE clients will gain access to AED trading pairs.
Derivatives remain subject to further approval.

According to a press release issued by Payward, the company received Full Market Approval from Dubai's Virtual Assets Regulatory Authority (VARA), completing the final stage of its licensing process. The approval follows preliminary authorization granted in May 2026, which allowed Payward to establish its local operations before onboarding customers.

Kraken prepares dirham-based trading services

Kraken plans to introduce spot and margin trading with pairs denominated in the UAE dirham. Customers will be able to deposit and withdraw funds directly in AED, removing the need to convert local currency before accessing supported trading markets.

The initial offering will also include on-chain staking, tokenized stock products through xStocks, and cryptocurrency transfers using Krak. Institutional customers will have access to over-the-counter spot trading and Kraken Prime, the company's service for professional market participants.

Payward has not specified an exact launch date. The company said additional products, including cryptocurrency derivatives and a broader selection of yield-generating services, could become available later in 2026 and during 2027, depending on further regulatory approvals.

The distinction is significant because the current authorization does not mean every product in Kraken's international portfolio will be immediately available to UAE customers.

Dubai approval supports international expansion

VARA's Full Market Approval permits Payward to begin regulated virtual asset activities in Dubai. The regulator oversees licensed digital asset businesses operating within its jurisdiction, establishing requirements for market conduct, customer protection, and operational compliance.

The approval represents another step in Payward's strategy of establishing locally regulated businesses rather than relying exclusively on services operated from overseas.

The company reports holding more than 100 licenses and registrations across Europe, the Americas, Asia-Pacific, and the Middle East. Its UAE operation will connect local customers to Kraken's broader trading infrastructure while operating within Dubai's regulatory requirements.

Payward also intends to offer its technology to regional financial businesses through embedded trading services, potentially extending its presence beyond customers using Kraken directly.

Local currency access could shape competition

The UAE launch will give Kraken a regulated route into a market where digital asset companies are competing for both individual traders and institutional business.

Direct dirham deposits and withdrawals are particularly important because they allow customers to move between local banking services and cryptocurrency markets without an additional currency conversion step.

For professional investors, access to institutional trading services could provide another option for executing larger transactions within a regulated environment.However, the commercial impact will depend on when Kraken begins onboarding customers, the availability of local banking arrangements, and the scope of services regulators permit.

The planned introduction of derivatives and additional yield products also remains conditional. For now, Payward has secured the authorization needed to establish its Dubai business, while the launch itself and subsequent product expansion are still ahead.

We also reported SoFi and Payward link the banking settlement network with Kraken infrastructure.

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