Nomura's Laser Digital to launch first regulated OTC desk for crypto options in Dubai

Key Points

1. Laser Digital, a subsidiary of Nomura, is the first company licensed under Dubai’s VARA pilot framework to offer regulated OTC crypto options.

2. The license allows Laser Digital to provide institutional clients with tools for hedging, yield, and risk controls, minimizing slippage and enabling flexible pricing.

3. Dubai and the UK are leading in regulating OTC crypto options, with Dubai implementing a comprehensive crypto regulatory framework in early 2023.

4. The UAE's derivatives market, valued at about $167 million in 2024, is expanding to include digital assets, with traditional platforms like DGCX and ADSS broadening their scope.

5. Global regulation of OTC crypto options is still nascent, with the EU applying broader financial regulations like MiFID II and EMIR, while the US permits some institutional trading under CFTC oversight.