Laser Digital, the digital asset arm of Japan’s investment bank Nomura, has secured a “limited licence” from Dubai’s Virtual Asset Regulatory Authority (VARA) to offer regulated over-the-counter (OTC) crypto options.
The company announced on Wednesday that it is the first to be approved under VARA’s pilot framework, which allows services to be offered under strict regulatory oversight. The licence currently covers institutional clients only.
OTC Desks Serve Large-Scale Crypto Traders
OTC desks enable institutions to trade large amounts of digital assets directly with counterparties. This helps to reduce price slippage and allows for more flexible pricing. Such services are mainly used by hedge funds, asset managers, trading firms, and other high-volume institutional clients.
Laser Digital plans to provide tools for hedging, yield generation, and volatility management while VARA assesses market readiness and risk controls before expanding the framework further.
Dubai Positions Itself as a Hub for Regulated Crypto Derivatives
The approval gives Laser Digital an early advantage in Dubai’s growing market for regulated crypto derivatives. It comes as more jurisdictions begin to develop rules for OTC crypto options, a sector still in its early stages of regulation worldwide.The United Kingdom is one of the few other countries making similar moves. In December 2023, the investment arm of UK pension giant M&G invested $20 million in GFO-X, the country’s first regulated Bitcoin derivatives exchange. This investment was part of a $30 million Series B funding round to launch a Financial Conduct Authority (FCA)-regulated, centrally cleared platform for Bitcoin index futures and options.
