Nomura-Supported Laser Digital Receives Regulatory Approval for Cryptocurrency Derivatives in Dubai

Laser Digital, the cryptocurrency trading and servicing subsidiary of Japanese bank Nomura, has obtained a limited license to offer regulated, over-the-counter (OTC) crypto derivatives from Dubai under the Virtual Asset Regulatory Authority’s (VARA) pilot framework. Under this regime, Laser Digital claims to be the first regulated entity under VARA to provide direct client-facing crypto OTC option services. As interest in crypto derivatives grows worldwide, regions like Dubai, with their supportive regulatory landscape, have become prominent destinations for firms. For instance, other platforms in the sector, recently acquired by larger entities, are also eyeing opportunities in Dubai.

“Crypto has become very Dubai-centered, and there is this kind of hype around people moving into Dubai and the VARA regulatory environment,” said Johannes Woolard, chief product officer at Laser Digital in an interview. “It’s because Dubai does a good job. They require detailed justifications for operations, but once you’ve provided those, they offer considerable flexibility.”

Laser Digital is focusing on major crypto tokens, initially launching medium-dated options executed under ISDA agreements. The International Swaps and Derivatives Association is a trade organization representing market participants in over-the-counter derivatives.

“It’s going to be vanilla structures, nothing complicated, just to grow that simple business and ecosystem. On top of that, you can build yield enhancement products, integrate the work related to borrowing and lending, and develop the spot franchise. But for now, the focus is on simplicity.”