The Middle East now has its first regulated Bitcoin options provider. Here’s how Dubai’s decision could influence pricing, adoption, and investor participation worldwide.
Summary
- Dubai’s crypto regulator VARA has approved its first license for over-the-counter Bitcoin options, granted to Laser Digital, a digital asset arm of Japan’s Nomura Bank.
- The license allows institutional clients to trade vanilla Bitcoin options under a regulated framework, following international legal standards like ISDA contracts.
- Regulated crypto options improve market structure by enhancing price discovery, enabling risk management, and expanding institutional participation, especially in the Middle East time zone.
- Dubai joins jurisdictions like the U.S., Singapore, and Switzerland in integrating crypto derivatives into mainstream finance, signaling broader global alignment on digital asset regulation.
Dubai’s Bitcoin options approval
Dubai is taking a new step forward in its approach to digital asset finance. On Aug. 6, the city’s Virtual Asset Regulatory Authority approved its first license for over-the-counter crypto derivatives.
The license was granted to Laser Digital, a digital assets subsidiary of Japan’s Nomura Bank, allowing it to offer crypto options directly to institutional clients for the first time under a regulated setup.
The scope is limited for now. Laser Digital can begin offering vanilla Bitcoin (BTC) options, which are simple contracts that give buyers the right, but not the obligation, to buy or sell Bitcoin at a set price within a specific period.
These instruments are familiar to traditional finance and often used to hedge price movements, manage volatility, or improve yields.
To align with global institutional standards, these contracts will follow the legal framework set by the International Swaps and Derivatives Association, and provide the kind of clarity and structure that large investors expect when trading more advanced financial products.
At this stage, the approval only covers Bitcoin. Laser Digital, however, plans to gradually expand into other cryptocurrencies and more complex structures as the regulatory environment allows.
Getting the license involved close coordination with the regulator and required Laser Digital to meet strict conditions across legal, operational, and compliance areas.
Different countries, different paths
Around the world, several jurisdictions have already taken steps to bring crypto derivatives under formal financial oversight.
In the U.S., the Chicago Mercantile Exchange has been offering Bitcoin futures since 2017 and added Bitcoin options in 2020.
CME’s offerings remain among the most liquid and trusted crypto derivatives products globally, used by hedge funds, asset managers, and trading firms seeking a regulated venue.
Singapore took a more selective approach. The Monetary Authority of Singapore allows crypto futures and options on licensed exchanges but restricts access to institutional and accredited investors.
Meanwhile, Switzerland has integrated crypto into its financial markets by permitting exchange-traded products and derivatives to be listed on its major stock exchanges.
Hong Kong, after a period of caution, has started to permit regulated Bitcoin futures exchange-traded funds for retail investors.
It is also laying the groundwork for a more structured regulatory regime around crypto services, marking a shift in attitude from hesitation to cautious approval.
However, the UK has taken a more conservative stance. Regulators there have banned the sale of crypto derivatives to retail consumers, citing concerns about volatility and investor protection.
Still, institutional investors based in the UK can access these products through overseas venues, and the country continues to assess how to engage with the crypto sector under tighter controls.
For global capital allocators, the presence of regulated derivatives is a positive signal, suggesting that crypto is becoming a part of mainstream financial infrastructure.
But that trust comes with expectations. Regulators around the world are focused not just on access, but on stability. Oversight, legal clarity, and risk controls remain central to how these instruments are being introduced.
What regulated options mean for Bitcoin pricing and liquidity
Dubai’s approval of crypto options adds a new layer to how Bitcoin is priced and accessed.
With a new regulated venue in the Middle East, global price discovery can now draw from more data points, more time zones, and more types of participants, improving the chances that Bitcoin’s value reflects actual demand and not isolated speculation.
When more instruments like options are available, especially under legal clarity, liquidity tends to deepen. Traders, market makers, and institutions have more ways to enter and exit positions, which helps prices adjust more smoothly to new information.
In particular, metrics from the options market, such as implied volatility or the ratio of bullish and bearish contracts, help assess sentiment around Bitcoin. These tools already influence pricing in the U.S. and Europe, and Dubai’s entry brings that influence to a new region.
Risk management is another important piece. Bitcoin has long been seen as volatile, which discourages certain institutional investors from entering. Options allow investors to hedge against that volatility.
A miner, for instance, can use a put option to lock in a minimum price. That makes holding or interacting with Bitcoin more predictable, especially for entities that need stable financial models.
Even with hedging tools, there are moments of short-term turbulence. When large options contracts reach expiry, traders often adjust their positions, which can create sharp movements in price.
These expiry events are already a common part of the market cycle in regions where regulated options exist. As Dubai’s market grows, similar patterns could emerge, adding structure rather than randomness to price behavior.
Meanwhile, clear regulations also reduce friction for large financial players. Many funds and asset managers cannot participate in unregulated markets due to internal or legal constraints.
Dubai’s move removes that obstacle, allowing regional and global capital to interact with Bitcoin through a venue that meets compliance standards, leading to increased allocations and more consistent inflows of capital.
Dubai’s approach could influence global rules
Dubai’s approval of regulated crypto options is part of a broader, extensive strategy to turn the emirate into a global center for digital assets.
Over the past few years, Dubai has moved deliberately to build a structured environment for blockchain and crypto firms, and the licensing of Bitcoin options is the latest result of that effort.
The launch of the VARA in March 2022 was an early signal of intent. With a dedicated body focused solely on virtual assets, Dubai created a regulatory architecture from the ground up.
Since then, the government has introduced detailed frameworks covering exchanges, custody providers, token issuers, and now derivatives platforms. Each category is overseen under consistent rules designed to reduce risk and support growth.
The industry has responded. A growing number of blockchain firms, crypto exchanges, and fintech startups have set up in Dubai, drawn in by the combination of regulatory transparency and commercial flexibility.
Leading players, including large global exchanges and infrastructure providers, have opened regional headquarters in the emirate. Deribit, now owned by Coinbase, has also signaled plans to scale its presence in the city.
Dubai’s ambitions are also extending beyond trading platforms. Public and private institutions are exploring how blockchain and crypto can integrate into daily economic activity.
Some government-backed companies have started pilot programs, and several sectors, from airlines to real estate, are experimenting with crypto payments, tokenization, and NFTs.
Emirates Airlines, for example, is exploring direct crypto payments through a collaboration with a major platform.
The UAE’s crypto adoption has also gained traction at the retail level. Surveys and adoption data place the country among the top markets for digital asset usage.
Meanwhile, dedicated crypto zones, such as the DMCC Crypto Centre, add another coating of support by offering focused infrastructure and policy guidance for crypto firms.
Regulators in other parts of the world are watching closely. Dubai’s rollout of crypto options under defined rules could act as a working model for other jurisdictions, especially those trying to find the right balance between innovation and investor protection.
What happens next will depend on how quickly Dubai can scale this infrastructure, attract top-tier firms, and refine the rulebook as innovation evolves.
