Dubai Approves Full Virtual Asset Services License

Payward, the parent company of Kraken, received full market approval from Dubai’s Virtual Assets Regulatory Authority on October 6. The regulator issued Payward FZCO a virtual asset service provider license that authorizes broker-dealer activities, investment and management services. This marks the final regulatory step after preliminary approval granted in May.

The authorization allows the company to serve retail, professional and institutional investors under the emirate’s licensing framework. VARA’s public register now lists 58 licensed providers, up from 49 in May. Payward’s move expands its presence in a market that has seen growing competition from other crypto firms navigating similar rules.

Kraken Customers Gain Direct AED Access

At launch, Kraken users in the United Arab Emirates will be able to deposit and withdraw funds directly in UAE dirhams. The platform will support spot and margin trading in AED-denominated cryptocurrency pairs without requiring currency conversion outside the platform.

Additional services include on-chain staking, Payward’s xStocks tokenized equities offering, and Krak transfers. Institutional clients will receive access to over-the-counter spot trading through Kraken Prime and embedded trading capabilities for regional partners.

Payward plans to introduce cryptocurrency derivatives and further yield products later in 2026 and 2027, subject to additional approvals. The initial rollout targets Kraken’s existing trading infrastructure and liquidity network, ensuring UAE customers connect to the same order book used across other markets.

Expansion Builds on Growing Regulatory Framework

Payward already holds more than 100 licenses and registrations worldwide. The Dubai approval follows a series of partnerships, including a $100 million investment from Nasdaq at a reported $21 billion valuation. Nasdaq will support market surveillance technology and blockchain-based settlement infrastructure, with Nasdaq Equity Tokens expected in the second quarter of 2027.

The company has also pursued banking ties in the Gulf region. Earlier arrangements with Singapore Gulf Bank provide round-the-clock dollar settlement for institutional clients across Asia and the Gulf, while discussions continue with other financial institutions for custody, payments and liquidity services.

Payward’s UAE entity will operate alongside other licensed providers in the region. Dubai’s framework continues to attract expansion from traditional banks and platforms, including spot Bitcoin and Ether trading by Standard Chartered and spot crypto services planned by Capital.com through its affiliate.

Client Services and Timeline

The rollout is expected in the coming weeks. Payward has not yet specified an exact launch date, the full list of AED trading pairs, or detailed product availability. Services will remain subject to VARA rules and applicable conditions for each offering.

Arjun Sethi, co-CEO of Payward and Kraken, noted the UAE’s regulatory approach. The company will use the same infrastructure and order book available in other markets under Dubai’s framework.

Retail, professional and institutional customers will all fall under the approved license. The platform will connect to Kraken’s broader network, with potential for further product growth once regulatory steps are completed.