The cryptocurrency trading arm of Japan's Nomura bank, Laser Digital, has secured a limited license from Dubai's Virtual Asset Regulatory Authority (VARA) to provide regulated over-the-counter (OTC) crypto derivatives. As the first entity to be regulated under VARA, Laser Digital will offer direct client-facing crypto OTC option services.
Dubai, with its crypto-friendly regulatory environment, has become a popular destination for companies, including Deribit, a crypto derivatives platform recently acquired by Coinbase. According to Johannes Woolard, Laser Digital's chief product officer, Dubai's regulatory framework is attractive due to its willingness to give companies flexibility after thorough justification. Initially, Laser Digital will focus on major crypto tokens, offering medium-dated options under ISDA agreements, with plans to expand and build upon this foundation.