Rain Crypto Exchange obtains UAE license for virtual asset brokerage and custody.
Rain Crypto Exchange obtains UAE license for virtual asset brokerage and custody.
The Rise of Blockchain in the UAE: Rain Becomes the First Licensed Crypto Exchange
Rain, a Middle East-based crypto exchange partly backed by Coinbase, announced on Tuesday that it has secured a license to operate in the United Arab Emirates (UAE). This milestone makes Rain the first licensed crypto exchange in the UAE, marking a significant development for the blockchain industry in the region.
Regulated Trading in the UAE
With the granting of the Financial Services Permission (FSP), issued by the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM), Rain can now proudly call itself a regulated crypto exchange in the UAE. This license opens up new possibilities for local UAE residents and financial institutions to trade between the UAE dirham (AED) fiat currency and cryptocurrencies.
The Journey to Licensure
For Rain, obtaining the license represents the culmination of a five-year effort. In 2018, when the ADGM released its virtual asset framework, Rain was among the first exchanges to express interest in licensure. According to Joseph Dallago, Rain’s co-founder and CEO, obtaining the license is an “incredibly exciting opportunity” for the company. Dallago recognizes the UAE as one of the most important markets in the world for cryptocurrencies.
The UAE as a Global Hub for Crypto
The UAE has long been recognized as a hub for crypto companies. This year, reports have indicated a growing number of American crypto firms turning to the UAE as they face frustration with regulators in the United States. The regulatory infrastructure, digital infrastructure, and ability to attract a global pool of talent make the UAE an attractive destination for crypto ventures.
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In April, the UAE’s Securities & Commodities Authority started accepting applications for licenses from crypto firms interested in setting up offices in the country. Among the seven emirates that make up the UAE, Dubai stands out as the most renowned in crypto circles. It has earned a reputation as one of the most crypto-friendly jurisdictions globally.
Binance, the world’s largest crypto exchange by volume, has also recognized the potential of the UAE. In recent years, Binance opened three offices in Dubai and an additional one in the capital of Abu Dhabi after obtaining the necessary licenses. This demonstrates the growing interest and investment in the UAE’s blockchain industry by major players in the crypto space.
The Future of Blockchain in the UAE
Rain’s licensure in the UAE is a remarkable achievement that will shape the future of the blockchain industry in the region. The license not only facilitates easier trading between fiat currency and cryptocurrencies but also sets a precedent for other crypto exchanges to pursue regulation in the UAE. As more companies follow Rain’s lead, the UAE’s position as a global hub for blockchain innovation and investment will strengthen.
To summarize the significance of Rain’s licensure in the UAE, refer to the table below:
| Key Points |
|---|
| – Middle East-based crypto exchange Rain secures license to operate in the UAE |
| – Rain becomes the first licensed crypto exchange in the UAE |
| – License enables trading between UAE dirham (AED) and cryptocurrencies |
| – UAE recognized as a hub for crypto companies |
| – Dubai stands out as one of the most crypto-friendly jurisdictions |
| – Binance, the world’s largest crypto exchange, establishes offices in Dubai and Abu Dhabi |
| – Rain’s licensure paves the way for further regulation in the UAE’s blockchain industry |
The blockchain industry in the UAE is set to thrive, attracting more companies and individuals looking to capitalize on the region’s favorable regulation and digital infrastructure. The UAE’s commitment to fostering blockchain innovation positions it at the forefront of a global movement towards digital assets and decentralized systems. With Rain leading the way as the first licensed crypto exchange, the future of blockchain in the UAE looks promising.
