Laser Digital, Nomura’s digital asset subsidiary, secures the first license under Dubai’s VARA pilot framework to offer regulated OTC crypto options to institutional clients. OTC desks facilitate direct trading of digital assets, catering to high-volume and institutional clients like hedge funds and asset managers. Laser Digital aims to tap into Dubai’s demand for regulated crypto derivatives by offering tools for hedging and yield generation.

Global regulation of OTC crypto options is still in its early stages, with Dubai and the UK leading the way. UK’s M&G investment arm recently invested $20 million in GFO-X, the country’s first regulated Bitcoin derivatives exchange. The EU imposes broader financial regulations on crypto derivatives, while the US lacks a dedicated licensing framework for OTC crypto options desks.

Dubai’s comprehensive crypto regulatory framework under VARA allows for the licensing of exchanges, custodians, broker-dealers, and token issuers. The UAE is expanding its derivatives market, with steady growth and diversification expected. Traditional platforms like DGCX and ADSS are now including digital assets, providing clear regulation for emerging asset classes like crypto in the region.

Read more at Cointelegraph: Laser Digital launches regulated crypto options desk in Dubai