Laser digital, the subsidiary of the Japanese Digital Asset of the Japan’s Investment Bank Nomura, became the first company licensed under the plot of Dubai’s Virtual Asset Regulatory Authority (VARA) to offer regulated over-the-counter (OTC) crypto options.
The “limited license” will allow laser digital to offer OTC crypto options to institutional clients under strict supervision, the company Says Wednesday.
OTCs of OTCs allow institutions to trade large quantities of digital assets directly with counterparts, reducing slippage and enabling more flexible pricing. These tables are commonly used by fence funds, asset managers, trading companies and other high -volume and institutional clients.
Laser digital transfer positions to achieve Dubai demand for crypto regulated derivatives. The company plans to offer tools for relevance, generations and volatility management as regulators assess market readiness and risk controls prior to greater expansion.
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The global regulation of OTC crypto options is still in the early stages
A small but growing number of jurisdictions begin to arrange OTC crypto options desks, including Dubai and the United Kingdom leading the way.
In December 2023, the investment arm of the giant pension based in UK M&G Invested $ 20 million in GFO-XThe country’s first regulated exchange of derivatives.
The fund is part of a $ 30 million series B aimed at launching a Financial Conduct Authority (FCA) -regulated, central cleared platform for futures and choices in the Bitcoin index.
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Throughout the EU, crypto derivatives fall underneath Greater financial regulations Such as Mifid II and EMIR, which imposes reporting and cloves requirements. However, most member states have not yet introduced OTC licensing specific OTC.
In the United States, the CFTC allows some Institutional trading of crypto derivatives Under existing laws, but there is no dedicated licensing framework for the OTC crypto option tables.
Dubai, in contrast, combined the comprehensive framework of crypto regulation In early 2023, with rulebooks covering exchanges, guardians, broker sellers, and token providers under the vara.
Related: Why are crypto millionaires moving to the UAE (these explain to all)
UAE expands ambitions of derivatives with push to digital assets
The United Arab Emirate’s derivatives market remains small compared to the US, but recent developments point to steady growth and Variety. The market costs nearly $ 167 million in 2024, with an expected annual growth rate of 3.7% to 2031.
Traditional platforms such as the Dubai Gold & Commodities Exchange (DGCX) and OTC providers such as ADSS have long served regional goods and FX markets. But the UAE is now expanding its scope to include digital assets and financial institutions.
While the US is still leading global derivatives through exchanges such as CME and CBOE, the UAE has carved a niche by offering clear regulations for emerging asset classes such as Crypto.
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