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Laser Digital has obtained Dubai’s first OTC crypto options license.
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The license allows institutions to trade derivatives that are ISDA-compliant, starting with Bitcoin options.
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The approval supports Dubai’s push for regulated institutional cryptocurrency finance.
Laser Digital, a digital asset subsidiary of Japanese bank giant Nomura has obtained the first ever license to offer institutional clients in Dubai over-the-counter crypto options.
Laser Digital is the first company in Dubai to be granted a license for regulated OTC crypto-derivatives. The license was issued under the pilot program of Dubai’s Virtual Asset Regulatory Authority. The company confirmed that its operations will adhere to the internationally recognized International Swaps and Derivatives Association standards.
What this license means for Institutions
Laser Digital can now offer institutional clients crypto derivatives tied to legally enforceable, clear contracts. According to the company’s statement, all options will follow ISDA agreements which are the standard in traditional finance for ensuring clear risk disclosure.
The company’s product structure is based on vanilla options with a medium-term time frame, rather than complex derivatives. These instruments are designed to provide exposure to crypto prices on fixed terms. Johannes Woolard, Chief Products Officer at Laser Digital said that the firm is starting with simple instruments to ensure compliance and build trust.
Related UK FCA to end retail ban on crypto ETNs beginning October 8
Back-to-Basics Approach with Bitcoin
Laser Digital announced that it will start by offering options for major cryptocurrencies such as Bitcoin. The company will gradually expand its services after establishing a regulated presence in emirate.
It expects to expand its lending, spot crypto services and structured yield products in the future. All of these are subject to regulatory review.
Dubai’s Push for a Regulated Cryptohub
The approval is in line with Dubai’s larger push to attract institutional investment through a regulated cryptocurrency framework. VARA’s licensing system aims to provide legal clarity and international recognition for companies. Laser Digital’s entry in this space supports UAE’s strategy to build a hub for digital resources without compromising on supervision.
Laser Digital, a division of Nomura’s Digital Asset Division, is based in Dubai, London and Tokyo. This regulatory approval in Dubai allows the firm to meet the growing demand from institutional investors in the region for compliant crypto-products.
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