Payward FZCO Secures Full Market License from Dubai's VARA for Crypto Services

Payward FZCO, the parent company of cryptocurrency exchange Kraken, has obtained a full market license from Dubai’s Virtual Assets Regulatory Authority (VARA), enabling it to offer a comprehensive suite of virtual asset services within the Emirate.

The license, issued on October 6th according to VARA’s public registry, permits Payward FZCO to provide services including spot and margin trading, asset management, and brokerage. These offerings are targeted at retail, professional, and institutional clients in the UAE. Services are slated to launch within weeks, notably including the capability for UAE users to conduct trades directly using the UAE Dirham (AED).

With this addition, VARA’s public registry now lists 58 licensed entities, reflecting a growing number of regulated virtual asset service providers in Dubai. This development occurs within the context of the UAE’s established multi-track regulatory framework, where VARA oversees Dubai’s virtual asset activities, complemented by the roles of the Securities and Commodities Authority (SCA) and the UAE Central Bank.

Other financial institutions are also expanding their cryptocurrency operations in the region. Standard Chartered began offering Bitcoin and Ethereum spot trading for institutional clients in September via its DIFC branch. Furthermore, Capital.com’s subsidiary, Capital Vault, secured a virtual asset license from the UAE Capital Markets Authority (CMA) in August.

The VARA license marks a significant compliance achievement for Payward FZCO, building on its previous engagements with US regulators such as the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). Payward’s approach emphasizes direct engagement with regulatory frameworks over operating in less regulated offshore environments.

While the specific details of Payward’s institutional service offerings and its strategic use of the UAE as a hub for the Middle East and Africa markets are subjects of ongoing observation, the license underscores a commitment to operating within a regulated jurisdiction. The UAE’s regulatory environment continues to attract international and local exchanges, reinforcing its position as a regulated digital asset hub in the region.

Why This Matters

The materials describe a narrow update: Payward FZCO, the parent company of Kraken, received a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA) on October 6th. Whether Payward will use the UAE as a springboard for the Middle East and Africa markets.

Broader Context

Source materials place the factual news in this context: Kraken’s parent company Payward obtained a full market license from Dubai’s VARA.