Kraken Secures Full Dubai License for Dirham Trading Rollout
Vexoda Newsroom
Kraken's parent company, Payward, has received final approval from Dubai's VARA, paving the way for local dirham-denominated cryptocurrency trading and services for retail, professional, and instituti
Payward, the corporate entity behind the prominent cryptocurrency exchange Kraken, has successfully navigated the final regulatory checkpoint to launch its services in the United Arab Emirates (UAE). The company announced that its local subsidiary, Payward FZCO, has secured full market approval from Dubai's Virtual Assets Regulatory Authority (VARA). This significant development follows an initial preliminary approval granted in May of this year, indicating a progressive and thorough regulatory review process by the Dubai authorities.
The newly granted license, officially a Virtual Asset Service Provider (VASP) license, was issued on October 6th. This authorization empowers Payward FZCO to offer a comprehensive suite of digital asset services, including management and investment services, as well as broker-dealer functionalities. Critically, this approval will allow Kraken clients within the UAE to engage in spot and margin trading using the United Arab Emirates Dirham (AED) for trading pairs. Furthermore, direct deposit and withdrawal capabilities in the local currency will become available, with the exchange targeting a launch within the coming weeks.
This expansion into the UAE marks a strategic move for Kraken, aiming to cater to a diverse range of investors. The VASP license permits Payward FZCO to serve not only retail traders but also professional and institutional clients, reflecting Dubai's ambition to become a global hub for digital asset innovation and investment. The Dubai regulator, VARA, has been actively building its registry of licensed entities, with Payward FZCO now among the 58 approved virtual asset service providers, showcasing a growing and regulated digital asset ecosystem within the emirate.
The UAE's regulatory framework for virtual assets is becoming increasingly robust, attracting major players in the crypto space. This development for Kraken occurs in parallel with other significant moves by established financial institutions. For instance, Standard Chartered recently launched spot Bitcoin and Ether trading for institutional clients via its Dubai International Financial Centre (DIFC) branch, operating under the Dubai Financial Services Authority (DFSA). Additionally, Capital.com's affiliate, Capital Vault, secured a virtual asset license from the country's Capital Market Authority (CMA) to offer spot crypto services.
The granting of a full VASP license to Kraken's parent company signifies a maturing regulatory environment in Dubai, designed to foster innovation while ensuring investor protection. For traders and institutions in the region, this means access to a globally recognized exchange with enhanced fiat-to-crypto on-ramps and off-ramps using the AED. The ability to trade directly in local currency can simplify transactions, reduce conversion fees, and potentially increase trading volumes within the UAE market.
Looking ahead, Vexoda traders should monitor the official launch date for Kraken's dirham-denominated trading pairs. The successful integration of AED trading and banking services will be a key indicator of how effectively Kraken can tap into the local market. Further developments to watch include the competitive landscape as more regulated exchanges and traditional financial players continue to expand their digital asset offerings in the UAE, and any subsequent policy updates from VARA that might influence trading dynamics or introduce new service categories.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.