Regulatory approval always adds a certain level of legitimacy to any business. It is indeed gratifying to note that Laser Digital, a digital asset subsidiary of the financial titan Nomura, has just received an operating license from Dubai’s Virtual Asset Regulatory Authority (VARA). The permit promises increased trust and stability. Laser Digital Middle East, headquartered in Dubai, has successfully navigated the approval gauntlet, and exhibitions readiness to offer virtual asset broker-dealer services, and virtual asset management and investment services.
Dubai launched its licensing program earlier this year, giving its nod to several crypto-centric firms like Crypto.com and OKX on their way to full accreditation. Furthermore, Binance, the largest crypto exchange globally, has been granted a license to operate in Dubai since last July. With these developments, it’s evident that Dubai is progressively establishing a comprehensive blockchain-friendly ecosystem.
However, it’s essential to remember that regulations often come with a trade-off. While they contribute to security and minimize risks for investors, they also potentially stifle innovation. Too tight regulations can discourage startups, suppress creative thinking, and limit the diversity of offerings within the market.
On a more optimistic note, regulations can contribute to the formalization of an otherwise decentralized and uncontrolled sector. Notably, VARA ensures a thorough and consultative process that should provide institutional investors with the certainty they need to delve into this asset class, as mentioned by Laser Digital CEO, Jez Mohideen. While one could argue a regulated market disrupts the decentralization ethos of blockchain and cryptocurrencies, others might perceive it as a step towards maturing the digital assets market, coaxing more risk-averse institutional investors to dive in.
Laser Digital intends to launch its trading and asset management operations within a few months. By offering over-the-counter trading services and a variety of digital asset investment products, the company plans to take advantage of its newfound regulatory approval.
The crux of the matter lies in striking a balance, ensuring that the innovative and creative spirit that has driven the blockchain industry doesn’t get compromised under the weight of regulations. Yet, it’s a certainty that, like Laser Digital, more companies in this space will seek regulatory approval, given its potential to provide increased trust and lure more investors to the crypto world. While this can be viewed as indicating the maturation of the industry, time will tell if blockchain future can reconcile its principles with conventional norms.
Source: Coindesk
