The Abu Dhabi Global Market (ADGM) has granted in-principal approval to Laser Digital, the digital assets arm of Japan’s Nomura Bank, to provide broker-dealer services and asset/fund management services with both digital and traditional assets. This approval allows Laser Digital to operate fully as a financial services provider once it fulfills the specified conditions.
Laser Digital’s CEO, Jez Mohideen, expressed his delight at joining the global hub for digital assets created by ADGM, praising its comprehensive and clear regulatory framework. ADGM is an international financial free zone within Abu Dhabi, the capital of the United Arab Emirates. It spans nearly 15 square kilometers across two islands and comprises a registration authority, regulatory authority, and a court that applies common law.
This recent approval for Laser Digital follows the footsteps of other prominent cryptocurrency exchanges. Binance, the leading cryptocurrency exchange, received in-principal approval in April 2022 to operate in ADGM and obtained Financial Services Permission in November. Kraken, another well-known exchange, also received permission to operate in the ADGM in 2022. Furthermore, this year, the ADGM licensed two smaller virtual asset firms, UAE-based M2 and Bahrain-based Rain, highlighting its growing presence in the digital asset industry.
The recognition and approval from ADGM are significant milestones for Laser Digital and signify its growing prominence in the global digital asset market. These approvals also demonstrate the rising interest in and acceptance of cryptocurrencies and digital assets within the UAE and the wider region. The UAE has been actively positioning itself as a global hub for financial innovation, particularly in the digital asset space. The establishment of RAK Digital Assets Oasis (RAK DAO), a free zone for digital and virtual asset companies in Ras Al Khaimah, further underscores the country’s commitment to fostering the growth of the industry.
In addition to its approval in Abu Dhabi, Laser Digital also recently obtained an operating license from Dubai’s Virtual Asset Regulatory Authority (VARA). The quick succession of these approvals demonstrates Laser Digital’s commitment to expanding its operations and influence in the UAE’s digital asset landscape. The company also launched a Bitcoin Adoption Fund in August, emphasizing its dedication to promoting the adoption and use of cryptocurrencies.
Laser Digital’s affiliation with Nomura Bank and its participation in the Komainu joint venture further solidify its position in the industry. Komainu, a partnership between Nomura, CoinShares, and Ledger, also received an operating license from Dubai’s VARA in August. This joint venture aims to provide secure and compliant infrastructure for institutional investors to enter the cryptocurrency market.
Overall, ADGM’s approval of Laser Digital’s broker-dealer and asset/fund management services marks another significant step forward for both the company and the UAE’s digital asset ecosystem. With the growing acceptance and recognition of digital assets by regulatory authorities, the UAE is poised to become a leading global player in the digital asset space and attract further investment and innovation in the industry.
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