Laser Digital, a crypto trading subsidiary of Nomura Holdings, one of Japan’s largest investment banks, has reportedly made a record move, securing a limited license to offer the first over-the-counter (OTC) crypto derivatives license in Dubai. The digital asset regulatory framework of Dubai — Virtual Assets Regulatory Authority (VARA) — approved the license for Laser Digital under its pilot framework.
What is an OTC crypto derivative?
Over-the-counter crypto trading refers to buying and selling cryptocurrencies directly from a party, without an intermediary like a crypto exchange. A derivative is a financial contract that allows traders to speculate on the price of a cryptocurrency in the future without actually holding it.
With VARA’s pilot framework, Laser Digital can buy and sell crypto directly from a second party, without depending on any exchanges. An official statement by the company read that it is actively engaging with counterparties “seeking structured derivative solutions in the crypto asset space”. This includes yield enhancement and volatility management strategies.
In the wake of this ground-breaking move, Jez Mohideen, Co-Founder and CEO of Laser Digital, said: “We are grateful for the strong partnership with VARA, who have positioned themselves as a visionary regulator in the digital asset space.” According to Laser Digital executives, this milestone achievement aligns with their goal to deliver “institutional-grade products and governance” to the digital asset landscape by utilizing Dubai’s progressive and clear regulatory framework.
