KEY FACTS: Laser Digital, the digital asset arm of Japanese financial giant Nomura, has secured a pioneering license from Dubai’s Virtual Asset Regulatory Authority (VARA) to launch the first regulated over-the-counter (OTC) crypto options desk in the UAE, targeting institutional clients like hedge funds and asset managers. Operating under VARA’s pilot framework, the desk will offer medium-dated Bitcoin options using standard ISDA agreements, with plans to expand into yield strategies, lending, and spot trading pending further regulatory approval.
Source: Laser Digital
Nomura’s Laser Digital Pioneers Regulated Crypto Options Trading in Dubai
Laser Digital, the digital asset subsidiary of Japanese financial giant Nomura, has secured a license from Dubai’s Virtual Asset Regulatory Authority (VARA) to launch the first regulated over-the-counter (OTC) crypto options desk in the emirate. This milestone, announced on Wednesday, August 6, 2025, makes Dubai a frontrunner in institutional-grade digital asset trading and solidifies the United Arab Emirates’ (UAE) ambition to become a global hub for regulated cryptocurrency innovation.
Laser Digital, the digital asset subsidiary of Nomura, is proud to announce that it has secured its first limited licence to provide regulated OTC Virtual Assets derivatives service as the first regulated entity under Dubai’s Virtual Asset Regulatory Authority’s (VARA) Pilot Framework.
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The “limited license” granted under VARA’s pilot framework enables Laser Digital to offer OTC crypto options exclusively to institutional clients, including hedge funds, asset managers, and high-volume trading firms, under stringent regulatory oversight. Unlike exchange-based trading, OTC desks facilitate direct, large-volume transactions between counterparties, minimizing market slippage and providing greater pricing flexibility. This move is expected to meet the growing demand for regulated crypto derivatives in Dubai, a city increasingly recognized for its progressive and crypto-friendly regulatory environment.
Laser Digital’s entry into Dubai’s crypto derivatives market aims to bridge traditional finance with the burgeoning digital asset ecosystem. Founded in 2023 by Steve Ashley and Jez Mohideen, Laser Digital operates from Switzerland, with regional offices in the UAE and the United Kingdom, combining Nomura’s decades of expertise in global investment banking with deep knowledge of cryptocurrency markets. The firm’s leadership in Dubai, spearheaded by Jez Mohideen as regional head and Cameron Dickie as Head of Distribution, is poised to leverage the UAE’s clear regulatory framework to attract institutional investors seeking sophisticated crypto investment products.
The initial offerings will focus on medium-dated options tied to major cryptocurrencies, such as Bitcoin, executed under standard International Swaps and Derivatives Association (ISDA) agreements. These contracts, widely used in traditional finance, ensure clear legal frameworks and risk clarity for institutional clients. Over time, Laser Digital plans to expand its offerings to include yield strategies, lending, and spot crypto trading, pending further regulatory approval from VARA.
This strategic rollout aligns with Dubai’s broader vision to establish itself as a global center for digital asset derivatives. The UAE’s derivatives market, while smaller than that of the United States, is experiencing steady growth. Valued at approximately $167 million in 2024, the market is projected to grow at an annual rate of 3.7% through 2031, driven by traditional platforms like the Dubai Gold & Commodities Exchange (DGCX) and OTC providers such as ADSS. The addition of regulated crypto derivatives through Laser Digital further diversifies the UAE’s financial landscape, positioning it as a niche player in emerging asset classes.
Dubai’s emergence as a hub for regulated crypto innovation is no accident. Since the establishment of VARA in 2022, the emirate has pursued a comprehensive regulatory roadmap designed to balance innovation with robust oversight. Unlike many jurisdictions, Dubai has implemented a crypto-specific licensing framework that covers exchanges, custodians, brokers, and token issuers. The VARA Pilot Regime, under which Laser Digital operates, allows select firms to test their offerings in a controlled environment before progressing to a full Virtual Asset Service Provider (VASP) license. This staged approach has attracted global players like Laser Digital, as well as other firms such as Deribit, a crypto derivatives platform recently acquired by Coinbase, which also has plans to expand in Dubai.
This regulatory clarity stands in stark contrast to other major financial markets. In the United States, the Commodity Futures Trading Commission (CFTC) permits some institutional trading of crypto derivatives under existing laws, but there is no dedicated licensing framework for OTC crypto options desks. Similarly, in the European Union, crypto derivatives fall under broader financial regulations like MiFID II and EMIR, which impose reporting and clearing requirements but lack crypto-specific OTC licensing. The United Kingdom, however, is making strides in this area, with initiatives like GFO-X, the country’s first regulated Bitcoin derivatives exchange, which secured a $20 million investment from M&G’s investment arm in December 2023 as part of a $30 million Series B round.
Dubai’s proactive approach has attracted institutional players as well as fostered confidence in the region’s digital asset ecosystem. In June 2024, Laser Digital further solidified its presence in the UAE by securing a broker license from the Abu Dhabi Global Market (ADGM) for both traditional and digital assets, enabling it to offer broker-dealer and asset management services. The firm’s latest achievement in Dubai reinforces the UAE’s reputation as a business-friendly destination for crypto innovation.
The introduction of regulated OTC crypto options in Dubai is a game-changer for institutional investors seeking exposure to digital assets within a compliant framework. OTC desks are particularly appealing to large investors due to their ability to handle high-volume trades without significantly impacting market prices. Laser Digital is offering tools for hedging, yield enhancement, and volatility management to cater to the sophisticated needs of hedge funds and asset managers looking to navigate the volatile crypto market with greater confidence.
The use of ISDA agreements further enhances the appeal of Laser Digital’s offerings, as these contracts provide a familiar and legally enforceable framework for institutional clients accustomed to traditional finance. Starting with “back-to-basics” products like Bitcoin options, Laser Digital aims to build market traction before introducing more complex structured products. This cautious approach reflects the firm’s commitment to aligning with VARA’s rigorous oversight while responding to market demand.
Laser Digital’s regulatory approval marks a significant milestone in the UAE’s journey to become a global leader in digital finance. The firm's success in securing the first VARA license for OTC crypto options is pioneering a new market and reinforcing Dubai’s role as a magnet for institutional capital in the crypto space. The UAE’s clear and comprehensive regulatory framework, combined with its strategic positioning in the global financial landscape, is driving a wave of innovation that could reshape the future of digital asset trading.
As Laser Digital begins engaging with institutional counterparties in Dubai, the firm is poised to capitalize on the region’s growing demand for regulated crypto derivatives. With plans to expand its offerings in the coming years, subject to VARA’s approval, Laser Digital is laying the groundwork for a robust and scalable crypto ecosystem in the UAE. For now, the focus remains on simplicity and compliance, but the growth potential is immense as Dubai continues to carve out its niche in the global digital asset market.
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