Kraken Parent Company Secures VARA Approval to Launch Dirham-Denominated Trading in Dubai
Payward, the parent company of cryptocurrency exchange Kraken, has secured approval from Dubai's Virtual Assets Regulatory Authority (VARA) for its local entity, Payward FZCO, enabling it to offer crypto services in the UAE. The company intends to launch spot and margin trading pairs denominated in UAE dirhams (AED), including direct deposit and withdrawal options for clients in the coming weeks.
VARA Approval and VASP Licensing
On October 6, Payward's local affiliate, Payward FZCO, was granted a Virtual Asset Service Provider (VASP) license by Dubai's Virtual Assets Regulatory Authority (VARA). This license authorizes the company to offer virtual asset management, investment, as well as broker-dealer services. With this regulatory endorsement, Payward can now cater to retail, professional, and institutional investors in the UAE.
The VARA approval finalized proceedings following preliminary clearance received in May 2026, signaling Payward’s steady advancement in establishing its presence in the UAE market. The public VARA registry currently lists 58 licensed crypto service providers, up from 49 in May 2026, indicating robust sector growth in the region.
Launch Plans for Dirham-Denominated Trading
Payward announced that clients in the UAE would soon gain access to spot and margin trading pairs denominated in UAE dirhams (AED). Additionally, users will be able to make direct deposits and withdrawals in AED. The service is targeted for launch within the next few weeks, aiming to facilitate local currency-based cryptocurrency trading on Kraken’s platform.
This development marks a significant milestone for Kraken, enhancing its appeal and accessibility amid growing crypto adoption and formalized regulation in the country. Offering AED trading pairs considerably improves convenience for regional traders and investors.
Broader Regulatory and Market Context in the UAE
The UAE has recently experienced rapid regulatory evolution in the digital assets sector. Beyond VARA in Dubai, other regulatory bodies like the Dubai Financial Services Authority (DFSA) and the Capital Market Authority (CMA) have been implementing their frameworks and issuing licenses.
For instance, in September, Standard Chartered launched spot Bitcoin and Ethereum trading for institutional clients through its Dubai International Financial Centre branch, regulated by DFSA. In August, trading platform Capital.com unveiled plans to extend spot crypto services to UAE clients after its affiliate, Capital Vault, secured a virtual asset license from the CMA. These developments illustrate the expanding participation of major financial players in the UAE cryptocurrency market.
Why it matters
VARA’s approval and the forthcoming launch of AED-denominated crypto trading by Payward FZCO represent a pivotal advancement for the UAE’s digital asset ecosystem, underscoring growing confidence and engagement from major international players in the region. Enabling direct trading in the national currency simplifies access to cryptocurrency markets for local users and supports the integration of digital assets into the country’s conventional financial infrastructure. It also mirrors the broader trend of intensified regulatory frameworks and expanding crypto offerings across the Middle East, fostering a stable environment conducive to sustained innovation and investment growth.
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