Laser Digital, the digital asset division of Japan’s financial giant Nomura, has received a limited license from Dubai’s Virtual Asset Regulatory Authority (VARA) to operate a regulated over-the-counter (OTC) crypto options desk.
This marks the first time a company has been approved under VARA’s pilot framework to provide institutional OTC crypto options in the region, a move that further strengthens Dubai’s push to become a regulated crypto hub.
Institutional Access to Regulated Crypto Derivatives
The newly granted license allows Laser Digital to offer crypto options trading directly to institutional clients such as hedge funds, asset managers, and proprietary trading firms.
In contrast to exchange-based trades, OTC desks enable the counterparties to settle in direct, high-volume trades. This enables more tailored pricing, reduced slippage, and tailored risk management strategies—features of prime value for institutional participants working with large capital.
The product will feature volatility management tools, yield strategies, and crypto hedging all subject to close regulatory oversight, Laser Digital says.
Global Context: Regulation Still Nascent
While Dubai is a leader with crypto-dedicated legislation, others are simply catching up. In the United Kingdom, a major event in late 2023 was the injection by M&G’s investment arm of $20 million into GFO-X, Britain’s very first regulated Bitcoin derivatives exchange.
Meanwhile, Europe broadly governs derivatives under MiFID II and EMIR, though few countries have introduced specific frameworks for OTC crypto options. In the U.S., the CFTC permits certain institutional crypto trades, but a dedicated OTC licensing regime does not yet exist.
Dubai’s framework, launched in early 2023, includes comprehensive rulebooks for exchanges, custodians, brokers, and token issuers—making it one of the most advanced globally for crypto oversight.
UAE Increasing Position in Global Derivatives
Even though still tiny compared to the U.S., the UAE’s derivatives market is increasing. It was valued at around $167 million in 2024, with an annual growth rate through 2031 estimated at 3.7%.
Regulated entities such as the Dubai Gold & Commodities Exchange and OTC entities such as ADSS have historically dominated commodities and FX. The shift into digital assets is thus a strategic move into the next generation of finance.
With regulatory certainty and strategic initiatives such as VARA, the UAE is increasingly being positioned as an international hub for institutional trading of crypto, setting it up for greater-scale involvement in digital finance.
