Nomura’s Crypto Subsidiary Laser Digital Completes Licensing Process in Abu Dhabi

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As a researcher with a background in finance and experience in following the crypto industry, I find the news of Laser Digital’s successful acquisition of a broker-dealer license in Abu Dhabi to be an exciting development. The city’s Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) granting Laser Digital a Financial Services Permission (FSP) license marks the completion of the licensing process for this crypto firm, allowing them to handle traditional and digital assets in the UAE.

In simple terms, Nomura’s digital asset subsidiary, Laser Digital Limited, has been given approval by Abu Dhabi’s Financial Services Regulatory Authority (FSRA) to operate as a broker-dealer in the city. This permit, known as a Financial Services Permission (FSP) license, enables Laser Digital to manage both conventional and digital assets. With this license, Laser Digital has completed the licensing procedure with Abu Dhabi Global Market (ADGM).

Laser Digital Ready to Offer Crypto Services in Abu Dhabi

Jez Mohideen, the CEO of Laser Digital’s UAE branch, announced that the company is prepared to enter the cryptocurrency industry in the United Arab Emirates. Mohideen shared this intention.

“Our enthusiasm lies in making a positive impact in the digital asset sector within the UAE. Maintaining strict adherence to compliance and regulatory guidelines has been our long-standing priority at ADGM. We are excited to join forces with ADGM’s community and help shape its future.”

Last September, the ADGM preliminarily approved an application from Laser Digital. This was revealed in a press release by Nomura, stating that Laser Digital selected Abu Dhabi due to the forward-thinking and clear regulatory practices of the ADGM. The announcement highlighted that the ADGM fosters communication and cooperation among various industries, including the cryptocurrency field.

In 2022, Nomura established Laser Digital as a new venture, with Mohideen, who served as Nomura’s Chief Digital Officer and Co-Head of Global Markets EMEA, and Steve Ashley, the previous head of Nomura’s wholesale division, as co-founders. Nomura set up Laser Digital Holdings AG in Switzerland for this business. In October of the previous year, Laser Digital broadened its presence into Japan by opening a new office in Tokyo. Prior to that, in August, the company obtained a full operating license from the Dubai Virtual Asset Regulatory Authority (VARA), completing the licensing procedure with VARA.

The UAE is Supportive of the Crypto Sector

The UAE is widely regarded as an alluring and hospitable location for the cryptocurrency sector. Uncomplicated regulations have streamlined the application process for businesses, thereby pulling a significant number of entities towards this area. Recently, blockchain infrastructure provider Blockdaemon secured authorization from the ADGM to initiate business in Abu Dhabi. With plans to offer its Web3 infrastructure solutions in the UAE, Blockdaemon intends to assist other service providers in the region.

In April, Chiliz, a blockchain company specializing in sports and entertainment, unveiled a collaboration with the UAE Pro League. The goal is to enhance fan engagement and boost the league’s visibility through the innovative use of blockchain technology.

I’m an experienced crypto investor and last November was an exciting time for us in the industry. Paxos, a well-known stablecoin issuer, received approval from the Financial Services Regulatory Authority (FSRA) in the United Arab Emirates (UAE) to offer their fiat-backed USD stablecoins. Their stablecoin lineup includes USDP, PAXG, and PYUSD. At the same time, the Abu Dhabi Global Market (ADGM) granted a license to eToro, a leading retail and social trading platform, enabling them to operate as a securities, derivatives, and crypto broker in the UAE.

A high-ranking executive at crypto and blockchain company Komodo holds the opinion that the UAE is a more favorable location for the industry than the United States, due in part to the UAE’s political stability. As stated by Kadan Stadelmann, Komodo’s CTO, this stability is achieved through the country’s monarchical system of government. In contrast to democratic policy changes which can result in delays and bureaucratic hurdles, the UAE’s monarchy allows for a more streamlined decision-making process.

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2024-06-19 17:34