Laser Digital Receives Regulatory Approval from Dubai’s VARA for OTC Crypto Derivatives
August 6, 2025 — Laser Digital, the cryptocurrency trading and servicing subsidiary of Japanese bank Nomura, has become the first regulated entity authorized to offer over-the-counter (OTC) crypto derivatives in Dubai under the Virtual Asset Regulatory Authority’s (VARA) pilot framework. This milestone marks Laser Digital’s receipt of a limited license to provide regulated OTC crypto options directly to clients in a highly crypto-friendly regulatory environment.
Pioneering Regulated Crypto OTC Services in Dubai
As part of VARA’s pilot regulatory regime, Laser Digital is the first firm to hold a license enabling it to conduct crypto OTC option services with direct client engagement. The company is initially targeting major cryptocurrency tokens through medium-dated options contracts, executed under International Swaps and Derivatives Association (ISDA) agreements, setting a precedent in this emerging market sector in the Middle East.
Johannes Woolard, Chief Product Officer at Laser Digital, commented on the development: “Crypto has become very Dubai-centered, with growing enthusiasm around the VARA regulatory environment. Dubai enforces rigorous justification for proposed activities, but if approved, offers firms considerable operational freedom.”
Focus on Simple, Transparent Offerings
Laser Digital plans to begin with straightforward, vanilla option structures in the OTC crypto derivatives space. According to Woolard, the initial emphasis is on “keeping it simple” to build a solid foundation for the business and the surrounding ecosystem. Over time, the company intends to introduce more advanced products, such as yield enhancement strategies, borrowing and lending features, and spot trading options.
The move underscores Dubai’s rising status as a global hub for cryptocurrency innovation, regulatory clarity, and institutional adoption. Other industry players, including Deribit—the crypto derivatives platform recently acquired by Coinbase—are also exploring expansion plans in the region.
Dubai’s Growing Appeal for Crypto Firms
Dubai’s regulatory approach to virtual assets, led by VARA, offers a structured yet flexible framework designed to attract blockchain and crypto enterprises. By combining strict compliance requirements with an openness to innovation, Dubai has become a preferred destination for firms seeking to scale crypto derivative products legitimately amid increasing global regulatory scrutiny.
Nomura’s backing of Laser Digital further legitimizes the venture and signals growing institutional interest in digital asset derivatives trading. This development may encourage more traditional financial institutions to consider crypto derivatives as part of their product offerings.
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Ian Allison, Senior Reporter, CoinDesk
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