Laser Digital, a subsidiary of Nomura, has obtained the first license issued by the Virtual Asset Regulatory Authority (VARA) of Dubai to offer regulated crypto OTC options, with a direct impact on the derivatives offering related to Bitcoin and beyond.
What is the VARA license of Dubai for OTC crypto options?
The new “limited” VARA license allows Laser Digital to operate OTC desks for options on digital assets, intended exclusively for controlled institutional clients. The OTC (Over The Counter) refers to platforms where large volumes of Bitcoin and other assets are traded directly, without going through a public exchange, reducing slippage (i.e., the price variation between the order and its execution) and offering greater flexibility on prices.
The permission was granted under rigorous supervision regulatory, marking the first true opening of Dubai (and the Middle East) to clearly managed crypto derivative finance.
Who are the recipients of regulated Bitcoin OTC derivatives?
The target of Laser Digital primarily includes hedge funds, asset managers, trading companies, and institutional operators with a high volume of capital. For these entities, the ability to access regulated products on Bitcoin in OTC mode represents an advantage in terms of managing volatility, hedging strategies, and seeking alternative yield.
This initiative can simplify the entry into the crypto market for traditional operators, still hesitant due to a lack of certain rules and protections. Furthermore, it represents a growth lever for Dubai as an innovative financial hub.
What changes for the crypto derivatives market in Dubai after Laser Digital’s move?
The crypto derivatives market in Dubai remains small in size compared to the United States, but the data confirms a growing trend: 167 million dollars in 2024, with an average annual growth of 3.7% estimated until 2031.
With the arrival of the VARA license for OTC options, the sector opens up to the possibility of more advanced instruments for hedging, yield generation, and volatility management. This means that investors and professional operators will be able to use entirely new strategies, with more manageable risks thanks to the protections imposed by the local regulatory framework.
The real innovation is the regulatory clarity: Dubai adopted precise rules in 2023 for exchanges, brokers, tokens, and now also for OTC derivatives. This makes the region the leading edge among rapidly developing markets, where many other countries — including the United Kingdom — are still in the phase of defining rules on crypto and derivative products.
What are the rules and risks under the VARA framework?
The VARA of Dubai has introduced a strict pilot framework: the license issued to Laser Digital is defined as “limited,” meaning it is subject to continuous monitoring and risk controls. Before expanding the company’s operations and extending them to new instruments or clientele, the regulator will assess the impact of the activities on the market and compliance with transparency and risk management rules.
According to internal sources, Dubai’s goal is to ensure that every step takes place under strict supervision, avoiding cases of excessive speculation or manipulation that have affected other less monitored jurisdictions in the bull and bear crypto market.
What distinguishes Dubai from other jurisdictions on Bitcoin derivatives?
Dubai is positioned today among the few markets with already active rules and a centralized authority like VARA, after having launched its comprehensive regulatory framework on cryptocurrencies and digital services in 2023. In contrast, markets like the British one or the European Union itself are still preparing specific regulatory structures for crypto derivatives, leaving areas of uncertainty for operators and investors.
This attracts institutions seeking financial innovation, but with the security of compliance with regulations and the reduction of legal risk: key points for those moving large capitals on Bitcoin, Ethereum and associated derivative products.
What to Expect Now: Impact and Outlook for Bitcoin OTC in Dubai
The institutional entry into regulated Bitcoin derivatives opens a new cycle for Dubai and for the entire crypto segment in the Middle East. The effects could include:
- Growth of financial infrastructure dedicated to digital assets
- Arrival of new licenses for other global players in the derivatives and OTC sector
- Increase in liquidity and increasingly advanced strategies managed directly by institutional desks
However, the real game will be played on the speed with which the market will be able to implement effective controls and attract new investors while maintaining high standards of transparency.
Everything can change in the coming weeks: the license of Laser Digital is the first step, but the direction of the crypto derivatives sector in Dubai will depend on the moves of the regulators, the interest of the institutional players, and the regulatory evolution on a global level. Follow the VARA updates and the upcoming licenses closely: the revolution of regulated digital assets could start right here.
