Laser Digital, Cryptocurrency Trading and Service subsidiary of Japanese Bank Nomura, ensured a limited license to offer regulated, over-the-counter (OTC) cryptoderivatives from Dubai under the virtual asset regulatory authority’s (Vara) pilot frame.
Under this regime, Laser Digital says it is the first regulated device under Vara that offers direct client-facing crypto OTC option services.
When crypto belts ramp up all over the globe, places like Dubai with its crypto-friendly regulatory framework have become hot destinations for businesses. For example, Deribit, Crypto Derivatives platform, recently acquired by Coinbase, also has Dubai plans in the works.
“Crypto has become very dubai-centered, and there is this kind of hype about people moving into Dubai and Vara-regulating environment,” said Johannes Woolard, product manager at Laser Digital in an interview. “It’s because Dubai is doing a good job. They make you justify in many details what to do, but then once you have justified it, they are willing to give you a quite long leash.”
Laser Digital looks at large crypto-tokens, which originally offering medium-dated options, performed under ISDA agreements, Woolard said. International Swaps and Derivatives Association is a trade organization of participants in the market for over-the-counter derivatives.
“It will be vanilla structures, nothing complicated, just to grow the simple business and ecosystem. On top of it you can build yield improvement of things, bring the work we do around loan lending, and bring the spot franchise. But initially you just have to keep it simple.”
