Nomura’s crypto arm approved for operating license in Dubai.

Nomura's crypto arm approved for operating license in Dubai.

Blockchain Industry in Dubai Gains Momentum as Laser Digital Secures Operating License

The blockchain industry in Dubai is making significant strides towards becoming a global hub for digital assets, as Laser Digital, the digital asset subsidiary of financial services giant Nomura, recently announced that it has received an operating license from Dubai’s Virtual Asset Regulatory Authority (VARA). This marks the final stage of the licensing process, allowing Laser Digital Middle East, based in the emirate, to offer virtual asset (VA) broker-dealer services and VA management and investment services.

Dubai established a licensing program earlier this year in order to regulate and legitimize the operations of blockchain companies in the region. As a result, several prominent companies, including Crypto.com and OKX, are currently in the process of obtaining full approval. In July, Binance, the world’s largest crypto exchange, succeeded in obtaining a license to operate in Dubai. These developments signal Dubai’s commitment to fostering innovation and attracting major players in the blockchain industry.

Laser Digital Middle East plans to launch its trading and asset management business in the coming months, providing over-the-counter (OTC) trading services and a diverse range of digital asset investment products. This offering will serve as a crucial bridge for institutional investors, as it combines regulatory compliance facilitated by VARA’s licensing process with innovative blockchain solutions.

VARA’s thorough and consultative approach to regulation ensures that institutional investors have the confidence to engage in this rapidly growing asset class. By creating a robust regulatory framework, Dubai aims to position itself as a global leader in the blockchain industry. The government’s commitment to fostering innovation and providing a supportive ecosystem for blockchain companies has attracted international players, who recognize the immense potential of Dubai’s blockchain market.

The licensing program implemented by VARA is a prominent example of how regulators are adapting to the challenges and opportunities presented by blockchain technology. Blockchain, often referred to as a decentralized ledger, enables secure and transparent storage and transfer of digital information. It has revolutionized various industries by providing solutions to long-standing inefficiencies and trust issues. In the case of the financial sector, blockchain technology has the potential to streamline cross-border transactions, reduce costs, and enhance security.

The licensing process itself is a testament to Dubai’s dedication to ensuring the integrity of the blockchain industry. It consists of four stages, each designed to evaluate a company’s compliance with industry best practices, cybersecurity measures, and risk management frameworks. Through this rigorous process, Dubai aims to establish a solid foundation for a thriving blockchain ecosystem that fosters trust and promotes innovation.

As the blockchain industry continues to expand, it is evident that Dubai is emerging as a key player. The city’s strategic location, favorable regulatory environment, and commitment to technological advancement make it an attractive destination for blockchain companies, investors, and entrepreneurs. The licensing program implemented by VARA serves as a catalyst for growth, providing clarity and confidence to investors seeking to tap into the potential of virtual assets.

In conclusion, Laser Digital’s acquisition of an operating license from VARA represents a significant milestone for the blockchain industry in Dubai. The licensing program introduced by Dubai’s regulatory authorities demonstrates the city’s commitment to fostering innovation and attracting key players in the blockchain space. With Laser Digital set to launch its trading and asset management services in the near future, Dubai is poised to further establish itself as a global blockchain hub, offering a range of secure and compliant digital asset investment opportunities.

Read more: Why Crypto Companies Are Warming to the United Arab Emirates

Edited by Sheldon Reback.

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