Dubai's Virtual Assets Regulatory Authority has granted Payward FZCO a full virtual asset service provider licence, upgrading the firm's earlier in-principle approval. The licence, reference VL/26/10/002, was issued on October 6, 2026, and VARA's public register now lists Payward's status as active.
The approval allows Payward to serve institutional, qualified, and retail investors in Dubai, though only within two specific activity categories: Broker-Dealer Services and Management and Investment Services.
What the licence actually covers
Payward's entry on the VARA register is narrow. The firm is not licensed for Exchange Services, Custody Services, Lending and Borrowing Services, Advisory Services, or Category 1 VA Issuance. Those omissions matter for anyone reading the licence as a broad permission to operate across crypto markets.
The register lists Payward's principal place of business as Unit UT-12-CO-74, DMCC Business Centre, Level 12, Uptown Tower, Dubai. VARA also assigned the firm CMA registration number CMA-VASP-0101000-0067.
An in-principle approval in Dubai is conditional. Holders cannot start virtual asset activities or take on clients until they receive a full VASP licence, which Payward now has.
Kraken's earlier announcement and the timing gap
Kraken had announced an earlier authorization on May 21, saying in a statement: "Kraken is now authorized by VARA in Dubai. Authorization covers spot, margin, OTC, staking, and institutional access through Kraken Prime. $AED funding follows later this year."
That release's title said the company planned a UAE launch following full market approval but did not include a dated launch milestone. VARA's updated record for Payward does not state an issuance time or any financial amount.
The difference between the two moments — the May announcement and the October licence — reflects the gap between conditional and full approval in Dubai's regime. Payward's register entry now reads VASP Licence and Active rather than In-Principle Approval.
The geographic boundary that limits the licence
VARA describes itself as the sole virtual asset regulator across Dubai's mainland and free zones, with the exception of the Dubai International Financial Centre. The Payward licence carries a geographic boundary. It should not be read as a licence issued by the DIFC regulator, nor as authorization for jurisdictions outside Dubai.
That boundary is a routine feature of VARA-issued licences, but it's often missed in coverage that treats a Dubai approval as a regional or global one. Payward's permitted activities remain confined to the emirate's non-DIFC territory.
What remains unclear
VARA's public register includes both fully licensed VASPs and firms holding In-Principle Approval, so the distinction between the two statuses is visible to anyone checking. Payward's move from one column to the other is now on the record.
What's not on the record is a launch date, a staffing figure, or any operational detail beyond the two licensed activity categories. Kraken's May statement pointed to $AED funding "later this year," but no follow-up date has been published. For now, the licence is active, the scope is defined, and the next public marker will be whatever Payward files or announces as it begins serving clients under the new status.
