Dubai has officially approved its first regulated crypto options trading license, marking a significant regulatory milestone in its ambitions to position itself as a global hub for digital assets.
Institutional Access to Regulated Crypto Derivatives
The license was granted to Laser Digital, the crypto affiliate of Japanese banking giant Nomura, by the city’s Virtual Asset Regulatory Authority (VARA). With this approval, Laser Digital becomes the only entity in Dubai authorized to offer over-the-counter (OTC) crypto derivatives to institutional clients. The firm’s services will adhere to the International Swaps and Derivatives Association (ISDA) framework, an industry standard in traditional finance, for governing contract terms and risk mitigation in OTC derivatives.
Initially, the company will offer vanilla options, or plain derivative contracts tied to crypto assets. These medium-term products are designed to provide institutional investors with exposure to the crypto market while avoiding the higher risk typically associated with more complex or exotic derivatives.
Dubai's Regulatory Model Gains Traction
The license was granted under VARA’s pilot regime, which demands thorough business justification before granting operational approval. According to Johannes Woolard, Chief Product Officer at Laser Digital, this rigorous yet supportive process contributes to Dubai’s growing appeal among crypto firms.
“Crypto has become very Dubai-centered,” Woolard said, emphasizing the regulatory clarity and operational freedom VARA provides once firms meet compliance expectations.
Dubai's clear licensing procedures and crypto-friendly environment are attracting a wave of digital asset companies. Major platforms like Deribit, recently acquired by Coinbase, are also exploring a move to the region. The broader strategy is aimed at fostering a secure yet innovative financial ecosystem that draws institutional players.
Future Expansion in Sight
Laser Digital has not provided a timeline for rolling out additional services but indicated that further offerings such as crypto lending, spot trading, and yield products could follow, subject to market demand and regulatory approval. The company stated that any expansion will continue to align with VARA’s evolving framework.
By being the first to operate within these regulated parameters, Laser Digital sets a precedent for institutional crypto derivatives trading in Dubai. The development also reinforces the city’s growing stature in the Middle East and globally as a preferred destination for crypto and fintech innovation.
Dubai’s proactive regulatory stance signals its commitment to balancing innovation with investor protection as it accelerates its role in shaping the future of the digital asset economy.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice