Rain Crypto Exchange, a leading cryptocurrency exchange in the Middle East, announced that its Abu Dhabi unit has successfully obtained a license to provide virtual assets brokerage and custody services in the United Arab Emirates (UAE).
Supported by Coinbase and headquartered in Bahrain, Rain’s regulatory approval represents a significant milestone in expanding its operations in the UAE’s burgeoning cryptocurrency market.
Expansion of Services in the UAE
With its Abu Dhabi Global Market (ADGM) financial free zone entity now licensed, Rain can offer a host of services to both institutional clients and select retail customers in the UAE. These services include the ability to facilitate buying, selling, and secure storage of virtual assets.
Additionally, the company will be permitted to open a bank account within the UAE, simplifying account funding for its clients through the local payment network.
Enhanced Credibility and Demand from Institutional Investors
Rain’s co-founder, Yehia Badawy, highlighted that the acquisition of a domestic license addresses the concerns of local asset managers, who have been cautious about collaborating with crypto firms lacking such approval. With regulatory clearance now in hand, Rain expects increased credibility and a more conducive environment for partnerships with institutional investors.
The license is considered a catalyst for attracting greater interest and demand from the institutional sector, further bolstering the UAE’s reputation as a crypto-friendly jurisdiction.
Rain Crypto Exchange – Growth Trajectory and Funding
Founded in 2017 by Yehia Badawy and three other entrepreneurs, Rain Crypto Exchange has been steadily gaining traction in the Middle East’s cryptocurrency market. The company secured backing from renowned investors, including Silicon Valley venture capital firm Kleiner Perkins and Coinbase Ventures.
In a Series B funding round last year, Rain successfully raised $110 million, pushing its valuation to an impressive $500 million.
The UAE’s Thrust in Attracting Crypto Firms
The UAE has been at the forefront of attracting major players in the cryptocurrency industry. By proactively enabling cryptocurrency payments in various sectors, such as real estate and education fees, the country has stimulated adoption rates and transaction volumes.
Furthermore, the UAE has been actively developing virtual asset regulations to foster an attractive business environment and sustain economic competitiveness within the Gulf region. Currently, the world’s largest exchange, Binance, is based in the UAE, with Gemini expected to join the market shortly.
As the UAE continues to forge a path towards crypto adoption and regulation, it solidifies its position as a prominent hub for cryptocurrency businesses, further fueling the industry’s growth within the country and beyond.
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