Dubai’s Virtual Asset Regulatory Authority (VARA) has granted approval to Japanese investment bank Nomura’s Laser Digital, the cryptocurrency division to operate a regulated over-the-counter (OTC) crypto desk.
This is the first license granted by VARA, under its pilot framework, to offer crypto options trading to institutional clients.
Nomura’s Laser Digital desk targets institutional investors like hedge funds, asset managers, and trading firms, providing tools for hedging, generating returns, and managing market volatility.
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Dubai’s Crypto Revolution
Dubai is positioning itself as a hub for regulated crypto derivatives, introducing comprehensive crypto regulations in 2023.
Regulation covers exchanges, custodians, and token issuers and creates a clear framework for digital asset businesses.
The UAE’s derivatives market valued at $167 million in 2024, is expected to grow steadily at 3.7% annually through 2031.
Globally, regulation of OTC crypto options is still developing.
The United Kingdom has regulated Bitcoin derivatives in 2023 with platforms like GFO-X.
In the European Union, crypto derivatives fall under existing financial rules, but specific OTC licensing remains limited.
Menahwhile, the United States allows some crypto derivatives trading under current laws. However it lacks a dedicated framework for OTC desks.
By offering clear regulations, the UAE is attracting crypto businesses and expanding its role in the global digital asset market.
With the latest developments, Dubai is poised to compete with traditional financial hubs like the US.
