Rain, a Middle Eastern cryptocurrency exchange, announced that its Abu Dhabi unit has been granted a licence to operate a virtual assets brokerage and custody service for clients in the United Arab Emirates (UAE). The exchange, headquartered in Bahrain and supported by Coinbase, stated that its entity based in the Abu Dhabi Global Market financial free zone can now offer institutional clients and select retail clients in the UAE the capability to buy, sell, and securely store virtual assets.
Additionally, Rain will have the opportunity to open a bank account within the UAE and enable local clients to fund their accounts using the domestic payment network, according to co-founder Yehia Badawy, during an interview on Tuesday. He emphasised that local asset managers were previously hesitant to collaborate with crypto firms lacking a domestic licence, but with this regulatory approval, they are likely to feel more at ease engaging in such transactions.
The licence is expected to expand Rain's potential customer base, particularly among institutional investors, as it now satisfies the regulatory requirements of the UAE. Since its establishment in 2017 by Badawy and three others, Rain has received backing from Silicon Valley venture capital firm Kleiner Perkins and Coinbase Ventures. In a Series B funding round last year, the exchange raised $110 million, resulting in a valuation of $500 million. Rain, with registered units in Bahrain and Turkey, intends to utilise the funds to facilitate regional expansion.
The UAE has actively sought to attract major players in the cryptocurrency industry and has quickly enabled cryptocurrency payments in various sectors such as real estate and school fees, fostering greater adoption and transaction volumes. By developing virtual asset regulations, the UAE aims to attract new business opportunities and remain competitive in the Gulf region. Notably, Binance, the world's largest exchange, is based in the UAE, and Gemini, another exchange, is expected to commence operations in the country soon.
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