The firm chose to expand into Abu Dhabi due to the innovation-friendly crypto regulations.

Nomura’s cryptocurrency division, Laser Digital, has achieved a significant milestone by securing a broker license in the Abu Dhabi region, authorized by the Financial Services Regulatory Authority of Abu Dhabi. This Financial Services Permission (FSP) license enables Laser Digital to offer broker-dealer services and asset and fund management for both digital and traditional assets.

Key Points of the License Approval

1. Comprehensive Services: With this license, Laser Digital can provide a wide range of services including broker-dealer activities and asset management for digital and traditional assets.
2. Commitment to Compliance: Jez Mohideen, CEO of Laser Digital, emphasized the company's dedication to compliance and regulation, expressing eagerness to contribute responsibly to the virtual asset industry in the UAE.
3. Strategic Choice of Location: Laser Digital chose Abu Dhabi due to its progressive and transparent regulatory environment, facilitated by the Abu Dhabi Global Market (ADGM). The region's innovation-friendly regulations make it an attractive destination for crypto firms.
4. Timeline: The approval comes nearly nine months after Laser Digital received in-principle approval from ADGM in September 2023.

UAE as a Crypto Hub

The United Arab Emirates, particularly Abu Dhabi and Dubai, is rapidly emerging as a global cryptocurrency hub due to its supportive regulatory environment and active engagement with the crypto industry.

Notable Developments:

1. Innovation-Friendly Regulations: ADGM has a progressive regulatory framework that encourages cross-industry dialogue and collaboration, fostering an environment conducive to innovation in the digital asset sector.
2. Stablecoin Licensing: On June 5, the Central Bank of the UAE approved a new licensing and monitoring system for stablecoins, further enhancing the region's regulatory infrastructure.
3. Growing Crypto Community: Increasing numbers of crypto firms and Web3 companies are establishing a presence in the UAE, attracted by its favorable regulatory climate and strategic initiatives.

Recent Entrants and Initiatives:

1. QCP Capital: In early May, QCP Capital, a crypto options trading platform, received in-principle approval for regulated digital asset activities from ADGM.
2. Chainalysis: On May 8, leading on-chain security firm Chainalysis set up regional headquarters in Dubai, engaging with local government stakeholders to promote best practices in crypto regulation.
3. Binance: In April, Binance secured a Virtual Asset Service Provider license in Dubai, marking a significant step in the exchange’s expansion in the region.
4. Solana Foundation: In February, ADGM signed a memorandum of understanding with the Solana Foundation to advance the development of distributed ledger technology.

Conclusion

Laser Digital’s new license is a testament to the UAE’s commitment to fostering a robust and innovative crypto ecosystem. The region’s strategic regulatory initiatives and its appeal to prominent crypto firms underscore its potential to become a leading global hub for digital assets. As more companies like Laser Digital establish operations in the UAE, the region is set to play a pivotal role in the future of the blockchain and cryptocurrency industries.