Laser Digital, the crypto arm of Japan’s $500 billion investment bank and brokerage Nomura, has secured an operating license from Dubai’s Virtual Asset Regulatory Authority (VARA). This development comes as many mainstream financial institutions are venturing into the cryptocurrency sector, reflecting the growing acceptance of these digital assets in the global financial landscape. It was reported that Laser Digital has received the final stage of the licensing process, allowing it to provide virtual asset (VA) broker-dealer services and VA management and investment services.
Dubai’s Progressive Approach to Crypto Regulation
Early this year, Dubai introduced a comprehensive licensing program, which seeks to facilitate the entry of crypto-related businesses into its flourishing economy. Several prominent firms, including Binance, Crypto.com, and OKX have been striving to obtain approval, highlighting the emirate’s commitment to fostering a conducive environment for crypto ventures.
Laser Digital Middle East, situated in Dubai, now stands ready to offer its trading and asset management services in the coming months. With an operating license, it will be allowed to provide institutional investors access to over-the-counter (OTC) crypto trading and a range of digital asset investment products according to a report.
The Resilience of Mainstream Banks in Embracing Crypto
This development follows Societe Generale, a prominent French bank, which just secured a license for crypto services last month and becoming the first company in France to do so. This milestone underscored the unwavering interest among mainstream banks in incorporating cryptocurrencies into their offerings, especially as crypto markets have witnessed impressive growth in 2023.
Despite the challenges faced in 2022, characterized by corporate scandals and plummeting token prices, top token bitcoin has managed to recover significantly, gaining approximately 75% year-to-date. Nevertheless, it remains below its all-time high of $69,000, indicating the potential for further growth in the future.
Laser Digital’s Expansion Plans and Assurances for Investors
With the successful acquisition of the operating license, Laser Digital is gearing up to launch its trading and asset management business soon. This venture will enable institutional investors to engage in OTC crypto trading and explore various digital asset investment opportunities.
Laser Digital CEO Jez Mohideen expressed confidence in VARA’s rigorous and consultative process in a statement, highlighting its role in providing institutional investors with the necessary assurance to embrace this new asset class.
Implications and Future Prospects
The entry of mainstream financial institutions like the $500 billion banking giant Nomura into the crypto sector signifies a pivotal shift in the financial landscape, as cryptocurrencies increasingly become integrated into traditional investment portfolios. Meanwhile, Dubai’s progressive approach to crypto regulation has positioned it as an attractive hub for crypto-based businesses, drawing interest from global players seeking expansion opportunities.
With Laser Digital obtaining the operating license, it is expected that more financial giants will follow suit, further fueling the growth of the crypto industry.
Final Thoughts
The latest developments surrounding Laser Digital’s operating license mark a significant milestone in the global adoption of cryptocurrencies. As mainstream financial institutions like Nomura continue to embrace the crypto sector, Dubai’s supportive regulatory environment is poised to attract further investments and innovations in the field.
The expansion of crypto services by established banks indicates a growing recognition of the potential benefits that digital assets can bring to investors’ portfolios. With this momentum, the future of cryptocurrencies appears promising, fostering a new era of financial inclusivity and technological advancements.