ADGM grants crypto exchange Rain in-principle approval for financial services permission

The permit, once issued following successful completion of all approval conditions, would enable Rain to list a greater number of virtual asset pairs

Yehia Badawy, one of Rain's founders, says the company strongly believes in the long-term value of cryptocurrency and its blockchain technology foundation. Photo: Rain Management

Rain, a cryptocurrency exchange company, received its in-principle approval for a Financial Services Permission from The Abu Dhabi Global Market’s Financial Services Regulatory Authority.

Once Rain has satisfied all approval conditions and receives its permit, the company will be able to list a greater number of virtual asset pairs provided they meet the Accepted Virtual Assets criteria set out by the ADGM's regulatory authority, the exchange company said.

Rain will also be able to provide its services to customers outside the GCC region, as well as to those it currently serves in the GCC through Rain Financial's subsidiary, Rain Management WLL.

"Working with regulatory bodies such as the FSRA is one of the fastest and most secure ways to offer cryptocurrencies to the region and benefits both customers and government bodies alike," Rain co-founder Yehia Badawy said.

"We look forward to working hard to fulfil all approval conditions to the satisfaction of the FSRA in order to obtain the permission to operate."

Last week, Rain Financial, operator of the Rain cryptocurrency exchange that is licensed by the Central Bank of Bahrain, raised $110 million in series B funding as digital currencies gain more acceptance among mainstream investors globally.

Founded in 2017 by Abdullah Almoaiqel, AJ Nelson, Joseph Dallago and Yehia Badawy, Rain will use the proceeds of the funding round to secure more licences in the Mena region as well as Turkey and Pakistan, enhance its technology through an advanced trading platform and grow the team.

Cryptocurrencies have become a popular mode of investment over the past two years, partly spurred by increased digital adoption during the pandemic. It has also been driven by bored investors with time on their hands during movement restrictions and extra money to invest after a series of government stimulus packages.

Rain Financial received a licence to operate as a crypto-asset broker by Bahrain's central bank in 2019. The company offers its customers a way to buy and sell digital currencies, as well as custodian services to hold their assets.

ADGM said it introduced the world’s first comprehensive virtual assets framework in 2018. It has established its International Financial Centre as an attractive business hub and platform for virtual assets and digital assets activities for home-grown, regional and international companies.