Dubai Opens the Door to Regulated Crypto Options
Dubai has officially approved its first crypto options trading license, granting Nomura’s digital asset arm, Laser Digital, the right to offer over-the-counter (OTC) crypto options to institutional clients. The move is part of Dubai’s pilot program under the Virtual Asset Regulatory Authority (VARA), which aims to tightly regulate the next generation of digital finance products in the region.
Laser Digital’s “limited license” means its services will operate under strict oversight, initially targeting hedge funds, asset managers, and institutional traders. These OTC desks allow participants to move large volumes of crypto directly, with more control over pricing, lower slippage, and no reliance on traditional exchanges.
The company plans to roll out tools focused on hedging, volatility management, and yield strategies, all under the close eye of regulators testing the waters of market readiness.
Dubai Gains Ground as Global Crypto Derivatives Hub
The approval positions Dubai at the forefront of a small but growing number of jurisdictions that are creating specific regulations for crypto OTC options. While the U.S. CFTC allows limited institutional trading of crypto derivatives, it still lacks a comprehensive framework for OTC options desks.
In contrast, Dubai launched a full crypto regulatory blueprint in early 2023, covering all players in the value chain—exchanges, custodians, brokers, and token issuers. This level of clarity is attracting serious players like Nomura, whose Laser Digital is now poised to serve institutional demand across the UAE.
The UK is also stepping up, with the FCA backing firms like GFO-X, a fully regulated exchange for Bitcoin derivatives. Meanwhile, the EU applies traditional finance rules like MiFID II and EMIR, but most member states have yet to adopt crypto-specific OTC laws.
UAE Doubles Down on Derivatives and Digital Assets
The UAE's financial markets may be smaller in scale than those in the U.S., but they are growing in both depth and innovation. Valued at $167 million in 2024, the UAE’s derivatives market is projected to grow steadily through the decade. Now, by including regulated digital asset products, Dubai is widening the scope of its financial toolkit.
Traditional platforms like the Dubai Gold & Commodities Exchange (DGCX) and OTC players like ADSS have laid the groundwork in FX and commodities. But Laser Digital’s entrance signals a shift toward more sophisticated crypto tools, aimed at attracting global capital flows.
he city is positioning itself as a neutral, well-regulated environment for next-gen finance while other global hubs struggle with outdated legal frameworks.
A Strategic Win for Dubai—and Nomura
This license isn’t just a win for Laser Digital. It marks a broader turning point for Dubai’s ambition to lead in regulated digital finance. With institutional-grade infrastructure now in place, and regulatory clarity attracting high-profile players, the UAE is shaping up to be one of the most forward-thinking crypto hubs on the map.
As other countries debate crypto oversight, Dubai is moving full speed ahead—one regulated crypto option at a time.
