Nomura's cryptocurrency arm, Laser Digital, secures a full broker license in Abu Dhabi, enhancing its operations in both traditional and digital asset markets. This milestone highlights the UAE's commitment to fostering innovation-friendly crypto regulations.
Nomura’s cryptocurrency division, Laser Digital, has achieved a significant milestone by securing a broker license in Abu Dhabi, a region renowned for its progressive and innovation-friendly cryptocurrency regulations. The Financial Services Regulatory Authority (FSRA) of Abu Dhabi granted the Financial Services Permission (FSP) license, signaling the completion of Laser Digital’s full licensing process with the Abu Dhabi Global Market (ADGM).
With this new license, Laser Digital is poised to offer comprehensive broker-dealer services, along with asset and fund management for both traditional and digital assets within the region. This development is a testament to Abu Dhabi’s growing reputation as a forward-thinking hub for cryptocurrency and digital assets.
Laser Digital’s Strategic Expansion
The decision to expand into Abu Dhabi was driven by the region’s favorable regulatory environment for cryptocurrencies. According to Jez Mohideen, CEO of Laser Digital, the company is eager to contribute to the UAE's virtual asset industry responsibly. He emphasized the firm’s commitment to maintaining the highest standards of compliance and regulation at ADGM, expressing excitement about contributing to the ADGM ecosystem.
Mohideen stated, "Laser Digital chose Abu Dhabi as its destination of choice due to ADGM’s progressive and transparent approach to regulation, based on strong cross-industry dialogue and collaboration with different sector players including the digital asset sector."
This strategic move comes nearly nine months after Laser Digital received in-principal approval from ADGM in September 2023. The firm’s full licensing underscores Abu Dhabi’s appeal as a prime location for crypto firms looking to leverage a supportive regulatory framework.
Abu Dhabi: A Growing Crypto Hub
The United Arab Emirates, particularly Abu Dhabi, is rapidly becoming a global hub for cryptocurrency due to its innovation-friendly regulations. The ADGM has been instrumental in this growth, welcoming a range of crypto firms and fostering a collaborative environment for regulatory development. Arvind Ramamurthy, ADGM’s chief of market development, expressed delight in welcoming Laser Digital, noting that the firm’s offerings align with ADGM and FSRA’s international best practices.
"We’re delighted to welcome Laser Digital as we expand our financial community to include partners such as Laser, whose offerings align with ADGM and the FSRA’s international best practices and progressive regulatory ecosystem," said Ramamurthy.
In a move highlighting the region’s supportive stance, the Central Bank of the UAE recently approved a new stablecoin licensing and monitoring system. This initiative is part of the broader effort to attract more crypto firms and enhance the UAE’s position as a leading crypto hub.
Increasing Crypto Presence in UAE
The UAE’s commitment to fostering a conducive environment for cryptocurrency is attracting an increasing number of crypto service providers and Web3 companies to Abu Dhabi. For instance, in early May, QCP Capital, a crypto options trading platform, received in-principle approval for regulated digital asset activities from ADGM. This made QCP the first Singapore-based crypto market maker and broker to secure a preliminary license in the region.
Additionally, Chainalysis, a leading on-chain security firm, established its regional headquarters in Dubai on May 8. The firm has been actively engaging with local government stakeholders to offer advice on best practices for regulatory development in the crypto industry.
Moreover, Binance, the world’s largest crypto exchange by volume, received a long-awaited Virtual Asset Service Provider license in Dubai in April. This followed co-founder Changpeng Zhao's decision to relinquish his voting power in the exchange’s local entity, aligning with regulatory requirements.
In February, ADGM signed a memorandum of understanding with the Solana Foundation to advance the development of distributed ledger technology. This partnership aims to foster innovation and enhance the technological infrastructure supporting digital assets.
Laser Digital’s acquisition of a full broker license in Abu Dhabi marks a significant milestone in the firm’s expansion and highlights the UAE’s growing role as a global cryptocurrency hub. The region’s progressive regulations, supportive environment, and commitment to fostering innovation continue to attract major crypto firms, positioning Abu Dhabi as a key player in the global digital asset market. As more companies set up operations in the UAE, the country is well on its way to becoming a leading destination for cryptocurrency and blockchain technology.
(ZOLTAN VARDAI, COINTELEGRAPH, 2024)