Laser Digital, the cryptocurrency trading and servicing subsidiary of Japanese bank Nomura, secured a limited license to offer regulated, over-the-counter (OTC) crypto derivatives from Dubai under the Virtual Asset Regulatory Authority’s (VARA) pilot framework.

Under this regime, Laser Digital says it is the first regulated entity under VARA to offer direct client-facing crypto OTC option services.

As crypto derivatives ramp up around the globe, places like Dubai with its crypto-friendly regulatory framework, have become hot destinations for firms. For example, Deribit, the crypto derivatives platform recently acquired by Coinbase, also has Dubai plans in the works.

“Crypto has become very Dubai-centered and there is this kind of hype around people moving into Dubai and the VARA regulatory environment,” said Johannes Woolard, head of product at Laser Digital in an interview. “It’s because Dubai does a good job. They make you justify, in a lot of detail, what you’re going to do, but then once you’ve justified it, they’re willing to give you quite a long leash.”

Laser Digital is looking at major crypto tokens, initially offering medium-dated options, executed under ISDA agreements, Woolard said. The International Swaps and Derivatives Association is a trade organization of participants in the market for over-the-counter derivatives.

“It’s going to be vanilla structures, nothing complicated, just to grow that simple business and ecosystem. On top of that, you can build yield enhancement things, bring in the work that we do around borrow lending, and bring in the spot franchise. But initially, just keep it simple.”