Laser Digital, the cryptocurrency trading and servicing subsidiary of Nomura, has secured a limited license from Dubai’s Virtual Asset Regulatory Authority under its pilot framework, authorizing the firm to offer over-the-counter crypto derivative options to clients.
The approval marks Laser Digital as the first regulated entity in Dubai permitted to provide direct client-facing crypto OTC option services, positioning the firm at the forefront of the emirate’s evolving digital asset landscape.
The license allows Laser Digital to execute medium-dated options on major cryptocurrency tokens, governed by International Swaps and Derivatives Association agreements to ensure standardized legal and operational protocols.
Under the new regime, Laser Digital plans to begin with straightforward, vanilla option structures while exploring the integration of yield enhancement strategies and borrowing and lending services on its platform.
Johannes Woolard, chief product officer at Laser Digital, noted that Dubai’s regulatory environment requires comprehensive justification of business models but subsequently grants significant operational latitude once approved.
The firm’s entry into OTC options complements its existing spot trading and lending services, enabling a broader suite of risk management tools for institutional clients in the region.
Dubai has emerged as a leading destination for crypto firms seeking regulatory clarity, with major platforms such as Deribit also pursuing licenses under the VARA framework to expand their global footprints.
The VARA pilot framework aims to balance investor protection with innovation, mandating firms to meet detailed operational and compliance standards before granting licenses.
Industry observers view the approval as another signal of Dubai’s strategic push to become a global hub for digital asset activity, backed by robust regulatory oversight and supportive infrastructure.
Market participants anticipate that regulated crypto derivatives offerings will attract institutional capital, diversifying the region’s financial ecosystem and creating new opportunities for hedging and speculation.
Laser Digital’s next steps include onboarding qualified counterparties and launching its OTC options desk, with trading expected to commence later this quarter pending final technical and compliance checks.
The company also plans to collaborate with local and international banks to develop collateral arrangements and optimize settlement processes for derivatives transactions.
As derivatives trading grows, market makers and liquidity providers are likely to follow suit, deepening market depth and enhancing price discovery mechanisms in Dubai’s nascent crypto derivatives market.
Regulatory experts caution that while the license represents a milestone, firms must maintain rigorous risk controls and transparent reporting to uphold market integrity and client confidence.
With regulatory approvals in place, Dubai’s digital asset sector is poised for further growth, attracting talent and technology investments to support a comprehensive crypto ecosystem.
Laser Digital’s approval under VARA underscores the emirate’s commitment to fostering a globally competitive, regulated environment for digital finance activities, signaling a maturation of the regional crypto market.
Looking ahead, stakeholders will monitor trading volumes, product innovation, and regulatory developments as Dubai consolidates its position in the global crypto derivatives landscape.
The license approval also sets a precedent for other Japanese and international banks seeking to expand their digital asset offerings in regulated jurisdictions outside major Western markets.
Overall, Laser Digital’s milestone highlights the interplay between regulatory innovation and institutional adoption in driving the next phase of crypto derivatives market development.
Industry participants expect the new offerings to support sophisticated risk management strategies and contribute to market stability as digital assets continue to gain traction among professional investors.
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