Dubai’s VARA Grants First OTC Bitcoin Options License—Air for Regulated Crypto Derivatives in the UAE

Dubai’s Virtual Asset Regulatory Authority (VARA) has taken a groundbreaking leap forward, approving its first-ever over-the-counter (OTC) crypto options license. The distinction goes to Laser Digital, a digital asset subsidiary of Japan’s financial institution Nomura. Operating under VARA’s “Pilot Framework,” this limited license empowers Laser Digital to offer institutional-grade OTC crypto derivatives, beginning with Bitcoin options, to sophisticated investors under a regulated umbrella.

Scope and Structure of Offering

Under the terms of its license, Laser Digital is permitted to trade OTC crypto derivatives directly with institutional clients, including hedge funds, asset managers, and trading firms. Initially, the offering will focus on “vanilla,” medium-dated options, relatively straightforward contracts tied to major cryptocurrencies like Bitcoin, structured in accordance with International Swaps and Derivatives Association (ISDA) standards

This approach, described by Laser Digital as “back-to-basics,” is designed to establish trust, ensure regulatory compliance, and offer clear contractual terms within a high-integrity framework.

Strategic and Regulatory Implications

The approval of Laser Digital’s license marks a crucial validation for Dubai’s growing ambition to become a global hub for institutional crypto finance. By offering a controlled, supervised framework for digital asset derivatives, VARA is distinguishing itself from other jurisdictions that lack tailored licensing regimes for such products.

Industry executives, including Johannes Woolard, Laser Digital’s Chief Product Officer, have praised Dubai’s regulatory environment for demanding detailed operational plans yet granting operators meaningful flexibility once approved

By becoming the first entity cleared under VARA’s pilot regime to launch OTC crypto options, Laser Digital breaks new ground. The approval not only supports Dubai’s digital asset strategy but also introduces legally enforceable, institutionally recognized crypto derivatives into the market

Looking Ahead: Expansion and Positioning

While initial offerings are limited to Bitcoin options, Laser Digital plans to broaden its suite of services in the future. Potential expansions include lending products, structured yield-generating solutions, and spot trading, subject to ongoing regulatory scrutiny and approval

This move signals both Laser Digital’s strategic push into regulated crypto finance and VARA’s readiness to shepherd institutional-grade virtual asset services—bolstering Dubai’s role on the global digital finance map