Dubai Grants First OTC Crypto Options License to Laser Digital Boosting Digital Asset Regulation

Dubai has positioned itself as a global leader in cryptocurrency regulation by granting the first-ever crypto options license to Laser Digital, a subsidiary of Japan's Nomura Bank. The approval, issued by the Virtual Assets Regulatory Authority (VARA), marks a significant milestone in the emirate's efforts to establish a robust legal and financial infrastructure for digital assets. This move offers a clear, structured pathway for firms seeking to provide institutional-grade crypto derivatives under a regulated framework.

The license allows Laser Digital to offer over-the-counter (OTC) crypto options services to institutional investors, directly in line with VARA’s regulatory guidelines. This development reinforces Dubai’s commitment to balancing innovation with compliance, particularly in fostering trust among institutional players by ensuring adherence to Anti-Money Laundering (AML) and Know-Your-Customer (KYC) protocols. It also highlights the emirate’s ambition to become a global hub for digital asset trading and innovation.

Johannes Woolard, head of product at Laser Digital, noted that Dubai’s regulatory approach is both rigorous and adaptive, providing firms with operational flexibility once their strategies are justified in detail. The firm’s initial focus is on offering vanilla options on major cryptocurrencies, executed under International Swaps and Derivatives Association (ISDA) agreements. This strategy aims to lay a solid foundation for the derivatives market and paves the way for future expansion into more sophisticated financial instruments [2].

The approval signals the effectiveness of VARA’s regulatory model in attracting established financial institutions to Dubai’s digital asset landscape. It also addresses a key market challenge—regulatory ambiguity—by providing a framework that supports institutional-grade oversight. This may encourage other global banks and financial firms to explore similar opportunities in Dubai, further solidifying the city’s status as a digital finance hub.

As the first of its kind, the Dubai OTC crypto options license sets a precedent for future regulation of crypto derivatives in the region and beyond. It not only boosts confidence in the legitimacy and security of crypto options trading but also demonstrates Dubai’s proactive stance in shaping the next era of financial markets [1].

Source:

[1] https://www.newsbtc.com/news/vara-first-crypto-options-license/

[2] https://watcher.guru/news/nomuras-laser-digital-first-to-get-dubai-otc-crypto-options-license