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Nomura’s cryptocurrency arm, Laser Digital, has received a broker license in the Abu Dhabi region for both traditional and digital assets.
The Financial Services Regulatory Authority of Abu Dhabi has approved the issuance of a Financial Services Permission (FSP) license for the company, marking the end of its full licensing process with the Abu Dhabi Global Market (ADGM).
The new license will allow Laser Digital to provide broker-dealer as well as asset and fund management services for both digital and traditional assets in the region.
The company considers the licensing approval a “significant milestone,” according to Jez Mohideen, the CEO of Laser Digital. He wrote:
“We are eager to contribute responsibly to the virtual asset industry in the UAE. We have always been committed to upholding the highest standards of compliance and regulations at ADGM, and we look forward to contributing to ADGM’s ecosystem.”
United Arab Emirates could become the next global crypto hub due to innovation-friendly regulations
Laser Digital’s operating license comes nearly nine months
after it received in-principal approval from ADGM in
September 2023.
The firm chose Abu Dhabi for its expansion plans due to
the innovation-friendly crypto regulations in the region,
according to Laser Digital’s CEO, Mohideen, who wrote:
“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.”
ADGM’s chief of market development, Arvind Ramamurthy, said that the regulator is delighted to welcome more innovation-oriented crypto firms. He wrote:
“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.”
UAE is attracting more crypto firms
Increasingly, more crypto service providers and Web3
companies have been expanding their presence into the Abu
Dhabi region, which is becoming a significant
cryptocurrency hub.
At the beginning of May, crypto options trading platform
QCP Capital received in-principle approval for regulated
digital asset activities from the ADGM. This made QCP the
first Singapore-based crypto market maker and broker to
receive a preliminary license in the region.
Leading onchain security firm Chainalysis also set up
regional headquarters in Dubai on May 8, after the firm
has been “actively engaging” with local government
stakeholders to offer advice on best practices for
regulatory development in the crypto industry that drive
innovation.
In April, the world’s largest crypto exchange by volume,
Binance, received a long-awaited Virtual Asset Service
Provider license in Dubai after co-founder Changpeng Zhao
gave up his voting power in the exchange’s local entity.
In February, ADGM signed a memorandum of understanding
with the Solana Foundation to advance the development of
distributed ledger technology.