Laser Digital, Nomura's cryptocurrency subsidiary, has received the first conditional license in Dubai to provide cryptocurrency OTC options services.
Laser Digital has been approved to participate in the pilot program of the Dubai Virtual Asset Regulatory Authority (VARA), allowing it to launch mid-term vanilla options for well-known Tokens like Bitcoin according to ISDA protocol, with a plan to expand product integration for lending and spot trading.
MAIN CONTENT
Laser Digital receives limited licensing from VARA, becoming the first entity licensed for cryptocurrency OTC options.
Starting with mid-term vanilla options for major Tokens like Bitcoin according to ISDA standards.
The product expansion plan aims to integrate lending services and spot trading to generate income.
What does Laser Digital's VARA licensing mean for the cryptocurrency market?
Laser Digital is the first company to receive limited licensing to provide OTC option services in Dubai under VARA's pilot program.
This license marks a significant development in legalizing and regulating cryptocurrency derivative services in the Middle East. VARA establishes clear standards, helping to enhance transparency and protect customer rights, thereby attracting more institutional investors to the cryptocurrency market.
The licensing process also confirms Laser Digital's expertise in operating derivative products that meet international standards, contributing positively to the sustainable development of the global cryptocurrency market.
What types of options will Laser Digital offer in the initial phase?
Laser Digital starts with mid-term vanilla options on major Tokens, notably Bitcoin, designed according to the ISDA protocol.
Vanilla options are popular, easy to understand, and flexible products suitable for a variety of investment strategies and risk hedging. The ISDA protocol supports contract standardization, ensuring legality and transparency in option transactions. This helps Laser Digital build trust and attract medium and large institutional clients looking to safely tap into the cryptocurrency derivatives market.
"The licensing of Laser Digital represents a significant step forward in establishing a legal framework for cryptocurrency option services in the Dubai area, opening up opportunities for rapid and sustainable development of derivative products."
Quote from the Deputy Director of VARA, August 2024
What product does Laser Digital plan to develop next?
The company plans to expand its portfolio to income-generating products, integrating lending and spot trading.
Combining options with cryptocurrency lending services provides diverse solutions for customers in asset management and profit optimization. At the same time, integrating spot trading increases liquidity and streamlines user experience. This strategy focuses on enhancing the attractiveness of the Dubai cryptocurrency market while diversifying revenue sources for Laser Digital.
This move is also in line with global trends as many large cryptocurrency companies enhance the development of a diverse derivatives product ecosystem, evidenced by the latest industry reports in 2024.
Frequently Asked Questions
What is a VARA license and why is it important?
VARA is the regulatory authority for digital assets in Dubai, providing licenses that help companies operate according to legal standards, increase reliability, and protect users.
What Tokens does Laser Digital offer options on?
In the initial phase, Laser Digital focuses on mid-term vanilla options on major Tokens like Bitcoin.
What is a vanilla option in cryptocurrency?
A vanilla option is a simple derivative contract that allows the buyer the right, but not the obligation, to buy or sell an asset at a predetermined price.
What is Laser Digital's product expansion plan?
The company will develop income-generating products like cryptocurrency lending and expand spot trading to increase liquidity.
How does VARA's licensing affect the cryptocurrency market in Dubai?
Enhancing transparency, attracting institutional investment, and promoting sustainable development for the regional cryptocurrency ecosystem.
Source: https://tintucbitcoin.com/laser-digital-nhan-giay-phep-vara-dubai/
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