Laser Digital, a cryptocurrency trading and services subsidiary of Bank of Japan Nomura, has secured a limited license to provide commercial (OTC) crypto derivatives regulated from Dubai under the Virtual Asset Regulatory Authority (VARA) pilot framework.
Under this regime, Laser Digital says that providing cryptographic OTC options services for direct clients is the first regulatory entity under VARA.
As crypto derivatives rise across the world, places like Dubai, with their crypto-friendly regulatory framework, have become a hot destination for businesses. For example, Deribit, the Crypto Derivatives platform that Coinbase recently acquired, also has a Dubai plan in action.
“Cryptocurrency is very Dubai-centric and there is this kind of hype around people moving into the Dubai and Rose's regulatory environment,” said Johannes Ullard, head of product at Laser Digital, in an interview. “That's because Dubai does a good job. They justify you a lot of details, but what you're trying to do, and once you've justified that, they want to give you a rather long leash.”
Laser Digital is considering major Crypto Tokens and offers a medium option initially implemented under an ISDA agreement, Ullard said. The International Swaps and Derivatives Association is a trade organization for participants in the market for commercial derivatives.
“It's going to be a vanilla structure, but it's not complicated just to grow that simple business and ecosystem. Besides that, you build yield enhancements, bring in jobs that borrow loans, and bring in spot franchises.
