Laser Digital, a subsidiary of the Japanese investment bank Nomura, has received a license to offer OTC crypto options in Dubai. This marks a significant development in the digital asset market.
First Regulated Entity Under VARA
Laser Digital has become the first regulated entity to offer client-facing OTC crypto derivatives under the Virtual Asset Regulatory Authority (VARA) in Dubai. The initial offerings will focus on medium-dated options linked to major tokens, structured under standard ISDA agreements.
Future Plans
According to Johannes Woolard, Chief Product Officer, the initial focus will be on simple products without complex structures. The company plans to eventually expand into yield strategies, lending, and spot crypto services.
Crypto Derivatives and the Dubai Market
Dubai is becoming a hub for digital assets due to a favorable regulatory environment that requires detailed disclosures. Woolard described VARA’s approach as rigorous yet practical, stating, "They make you justify, in a lot of detail, what you’re going to do, but then once you’ve justified it, they’re willing to give you quite a long leash."
Laser Digital's entry into the Dubai market highlights the city's aspirations to establish itself as a center for institutional digital asset trading, opening up new opportunities for players in this sector.
