Rain, a Cryptocurrency exchange in Bahrain, has become the first exchange to be given a regulatory license in the Middle East.
According to a July 31 blog post, the Central Bank of Bahrain handed over a Crypto-Asset Module (CRA) license to Rain to enable it to carry out many exchange activities.
This license has come in the week where Rain closed the BitMEX Ventures co-led $2.5 million funding round. Apart from the crypto derivatives giant, Blockwater (a Kuwaiti blockchain fund) also made some significant contribution towards that endeavor. But, the bigger news apparently is earning a regulatory license in the Middle East.
The blog post stated the following:
“As the first licensed cryptocurrency exchange in the Middle East, Rain has an unprecedented opportunity to tap into the incredible potential that cryptocurrency trading will bring to the region. We believe that Rain will bring greater diversification to Middle-Eastern traders with its exchange offering and experienced team, and we are thrilled to contribute to this defining moment.”
Many crypto trading businesses traditionally found the Middle East market a tough environment to trend on.
In the Asian gulf, certain types of transactions are forbidden by Islamic banking laws. Reason being that scholars have given conflicting opinions on whether cryptocurrencies conform to the existing interest lending and speculation norms.
While avoiding the issue, Rain on its part stated that it had formed meaningful ties with local banks and above all remains a fully-compliant financial operator. The blog post continues to say:
“Through licensing, we have demonstrated our commitment to the terms of the encrypted assets unit in terms of capital adequacy, cybersecurity, insurance, reporting, governance and other matters that ensure our readiness to provide our services to both institutional and individual clients.”
Meanwhile, the Arabian Gulf has improved its recognition of cryptocurrency activities. For instance, after a period of jockeying amongst diverse governmental ministries, Iran recently took formal steps towards giving the crypto mining a green-light.