UAE grants crypto license to Coinbase-supported exchange Rain
- Rain’s clients in the UAE can buy, sell, and safely store crypto assets.
- The UAE is one of the few countries that has implemented a set of crypto regulations.
The United Arab Emirates (UAE) has granted a license to a Middle Eastern cryptocurrency exchange named Rain to operate a crypto asset brokerage and custody service for local customers.
Rain Trading Limited (Rain ADGM) has been granted the first Financial Services Permission (FSP) by Abu Dhabi Global Market’s Financial Services Regulatory Authority to operate a virtual assets brokerage and custody service. pic.twitter.com/EyxCj4HbNy
— Rain (@rain) July 25, 2023
Supported by Coinbase [BASE], Rain said that its entity based in Abu Dhabi can now allow institutional clients and some retail clients in the UAE to buy, sell, and safely store crypto assets.
Rain will be able to create a bank account in the UAE and let local clients fund their accounts through the domestic payment network.
Established in 2017, the exchange has received funding from Kleiner Perkins and Coinbase Ventures in Silicon Valley. Last year, Rain raised $110 million in a Series B fundraising round, culminating in a $500 million valuation.
UAE, a new hub for crypto activities
The UAE is actively seeking crypto ventures in the region. It has promoted the usage of cryptocurrencies in many sectors in order to increase adoption and transaction volumes in the region. The UAE hopes to attract new investors with updated digital asset regulations.
In October 2022, blockchain intelligence firm Chainalysis published a report focusing on crypto adoption across the world. It found that the Middle East and North Africa (MENA) regions were among the top adopters of crypto.
MENA’s crypto volume identified the use cases for savings and remittance payments as top contributors. In the study, the UAE emerged as a significant crypto hub.
Amidst a sea of countries with ambiguous or non-existent regulations around crypto, Dubai is considered to be quite friendly. It is one of the few regions that have set out specific aims and guidelines regarding the crypto industry. The VARA intends to promote the United Arab Emirates (UAE) as a “regional and international hub” for virtual assets.