The new license allows Abu Dhabi residents to "buy, sell, trade and store virtual assets" on the Rain platform.
The United Arab Emirates (UAE) has opened its doors a bit wider to the world of cryptocurrencies, with Abu Dhabi's primary financial regulator granting a license to Rain, a notable cryptocurrency exchange.
The ADGM (Abu Dhabi Global Market) Financial Services Regulatory Authority's approval paves the way for Rain to extend its brokerage and custody services to UAE's residents.
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On July 25th, Rain revealed its newly acquired regulatory license, enabling UAE's institutional and retail users to "buy, sell, trade, and store virtual assets" on the crypto exchange.
Rain's CEO, Joseph Dallago, spoke about this recent development, stating:
This is a 5 year effort, as we were one of the first exchanges to enquire about licensure back in 2018, when the ADGM released their virtual asset framework.
Dallago also highlighted the firm's collaboration with a local bank for delivering services, underscoring the safety and legal protection of its users.
Aiming to bring a wealth of crypto services to the Middle East and Turkey, Rain operates from its base in Bahrain.
This breakthrough comes after Binance, the global crypto exchange behemoth, obtained comparable permissions from Abu Dhabi's financial watchdog in November 2022. More than six months after receiving the nod from regulators in Abu Dhabi, Binance is now considering making UAE its strategic hub.
The regulatory seal of approval from the ADGM Financial Services Regulatory Authority reflects the increasing acceptance of cryptocurrency platforms like Rain and Binance in the UAE.
Yet, it should be noted that not all regions in the UAE share the same sentiment. Earlier this year, Dubai's Virtual Assets Regulatory Authority issued warnings to the executives of the digital asset platform Open Exchange and even suspended BitOasis' license in July.
Rain's recent regulatory approval highlights the shifting landscape in the Middle East for cryptocurrency trading services, promising an interesting future for crypto enthusiasts in the region.
