Laser Digital, the ambitious crypto arm of Japan’s banking giant Nomura, has snagged a coveted regulatory nod to offer over-the-counter crypto derivatives in Dubai. This strategic move, announced today, marks the entity as the first of its kind under Dubai’s Virtual Asset Regulatory Authority’s (VARA) pilot framework. The city, with its increasingly crypto-friendly regulations, seems to be positioning itself as a global hub for digital currency enterprises.
Dubai’s Crypto Charm Offensive
Dubai’s allure for crypto businesses is no accident. The city’s regulatory landscape, while demanding in its requirements, offers a significant competitive edge once compliance is achieved. As Johannes Woolard, Chief Product Officer at Laser Digital, put it, “Crypto has become very Dubai-centered… Dubai does a good job. They make you justify, in a lot of detail, what you’re going to do, but then once you’ve justified it, they’re willing to give you quite a long leash.”
Woolard’s remarks underscore a central appeal for crypto firms: the balance between regulation and freedom. Laser Digital, in particular, is set to capitalize on this by initially rolling out medium-dated options under ISDA agreements—those familiar with the International Swaps and Derivatives Association know this is the gold standard for OTC derivatives. The focus, for now, remains on simplicity, as the firm plans to introduce “vanilla structures” before exploring more complex financial instruments. This approach mirrors similar strategies seen in Japan’s Osaka Exchange Advances Crypto Derivatives Strategy, highlighting a broader trend in the industry.
A Growing Market for Crypto Derivatives
The interest in crypto derivatives isn’t just a Dubai phenomenon; it’s a global trend. As traditional financial institutions and newcomers alike seek to tap into the burgeoning market, Dubai’s regulatory stance provides a crucial foothold. The recent acquisition of Deribit by Coinbase, another player with eyes on the Dubai market, further highlights this growing trend. This follows a pattern of institutional adoption, which we detailed in Coinbase, JPMorgan Deal Signals Shift in Institutional Posture Towards Crypto: Bernstein.
Yet, with every opportunity comes inherent risk. The question remains whether this surge in regulatory approvals and market entries can sustain long-term growth without falling into the pitfalls of over-speculation. As Woolard noted, the initial focus for Laser Digital will be on establishing a “simple business and ecosystem,” with plans to build on this foundation by integrating yield enhancement and spot franchise operations in the future. This measured approach seems prudent, given the volatile history of crypto markets.
A Look Back and Forward
Historically, the crypto world has been rife with highs and lows, with regulatory environments often playing catch-up to technological advancements. Dubai’s proactive approach, however, might just set a precedent. By demanding comprehensive justifications from firms while offering a supportive structure, the city is fostering an environment where innovation can thrive without the wild west feel that has characterized some crypto markets.
Looking ahead, the implications of such regulatory frameworks could be profound. For Laser Digital, the challenge will be to maintain its pioneering status while navigating the complex waters of global crypto markets. As other jurisdictions observe Dubai’s approach, it raises the question of whether similar frameworks might emerge elsewhere, creating a more unified and robust regulatory landscape.
In the meantime, the crypto world watches as Laser Digital takes its next steps in Dubai, a city that appears to be embracing its role as a key player in the digital currency revolution. Whether this trend can continue, however, remains to be seen. The only certainty is that the world of crypto never stands still—and neither does Dubai.
Source
This article is based on: Nomura-Backed Laser Digital Wins Regulatory Nod for Crypto Derivatives in Dubai
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
