Laser Digital Secures Dubai's First OTC Crypto Options License

Laser Digital, a subsidiary of Japan’s Nomura, has become the first company in Dubai to receive regulatory approval to offer over-the-counter (OTC) crypto options under a pilot regime managed by the Dubai Virtual Asset Regulatory Authority (VARA) [1][2]. This marks a significant development in the institutional-grade crypto derivatives market in the United Arab Emirates and establishes Laser Digital as the sole entity in the city authorized to offer such services directly to institutional clients.

The firm has confirmed that its operations in Dubai will adhere to standards set by the International Swaps and Derivatives Association (ISDA), ensuring that all crypto option contracts are executed under the same legal frameworks used in traditional finance [3]. This approach, Laser Digital said, ensures clarity in the rights and obligations of each party in a trade, reinforcing legal certainty and reducing counterparty risk [4].

Laser Digital has chosen to start with “back-to-basics” products, focusing initially on Bitcoin options. Chief Product Officer Johannes Woolard explained that the firm is prioritizing simple, vanilla options to build trust with counterparties and align with regulatory expectations [5]. The first batch of products includes medium-term vanilla options with fixed terms linked to crypto prices, designed to provide institutional traders with exposure to the crypto market without the risks associated with more complex derivatives [6]. All transactions will be processed under ISDA agreements, a standard practice in traditional financial markets [7].

The company has not yet provided a timeline for introducing additional services, but it has indicated that future offerings—such as lending, spot trading, and yield-generating products—will be launched based on market demand and subject to regulatory approval from VARA [8]. This gradual expansion strategy reflects Laser Digital’s commitment to maintaining compliance and transparency in its operations.

The approval of Laser Digital’s license underscores Dubai’s growing status as a global hub for digital assets. The regulatory framework administered by VARA has demonstrated flexibility and clarity, attracting major financial institutions to the region. By requiring detailed justifications for proposed activities and offering a clear approval process, VARA has created an environment conducive to innovation while maintaining oversight [9].

This development is expected to encourage more institutional participation in the crypto market, addressing long-standing concerns about the lack of regulation in OTC derivatives. Laser Digital’s success in securing the first OTC crypto options license may also inspire other firms to apply for similar authorizations, further strengthening Dubai’s position in the global digital asset landscape.

The move aligns with Dubai’s broader strategy to position itself as a leader in the digital economy. Recent initiatives, such as partnerships on real estate tokenization and custody services, highlight the emirate’s efforts to integrate blockchain technology into traditional financial systems [10]. As regulatory and strategic momentum continues to build, Dubai is likely to attract more international firms seeking to expand their digital asset offerings in a well-defined legal environment.

Source:

[1] CoinDesk – https://www.coindesk.com/policy/2025/08/06/nomura-backed-laser-digital-wins-regulatory-nod-for-crypto-derivatives-in-dubai

[2] Yahoo Finance – https://au.finance.yahoo.com/news/nomura-backed-laser-digital-wins-081659180.html

[3] AInvest – https://www.ainvest.com/news/laser-digital-secures-dubai-otc-crypto-derivatives-license-2508/

[4] Coinpedia – https://coinpedia.org/crypto-live-news/nomura-backed-laser-digital-secures-dubais-first-crypto-derivatives-license/

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

[6] PANews – https://www.panewslab.com/en/articles/c4d82032-a7aa-48a6-9249-8b0be25cb627

[7] Cointime – https://www.cointime.ai/flash-news/nomura-subsidiary-laser-digital-receives-dubai-94969

[8] CoinRank – https://x.com/CoinRank_io/status/1953020801877459273

[9] CoinDesk – https://x.com/CoinDesk/8/6/2025