Middle East cryptocurrency exchange Rain, which is licensed by the Central Bank of Bahrain and operates across the Gulf, has cut “a lot” of jobs amid a market downturn.
Founded in 2017 by Abdullah Almoaiqel, AJ Nelson, Joseph Dallago and Yehia Badawy, it raised $110 million in series B funding in January, but has been affected by the volatility in the sector.
Mr Dallago said in a LinkedIn post that Rain would be looking to “emerge stronger in the coming months”.
“Crypto saw a meteoric rise at the start of 2021,” he said.
“This was fuelled in part by sustainable interest and enthusiasm for the unique capabilities of this technology, and in part by unsustainable rampant speculation.
“The volatility in the industry has been difficult to properly plan for, which has resulted in the unfortunate changes that we have had to make today.
“This year has been a time for self reflection, and it is an opportunity for the industry to focus on its fundamentals and build crypto into a legitimate financial system. We had to say goodbye to a lot of really talented team members.”
Rain has not given an exact number of employees that were terminated. It was known to have more than 400 employees at the start of the year.
The staff cuts were made to reflect the “operational needs and market conditions,” the company told Bloomberg.
“As a business we have had to adapt our future plans, given these difficult market conditions, to ensure we can navigate through this downturn,” it said.
The company offers its customers a platform to buy and sell cryptocurrencies, as well as custodian services to hold their assets.
Its funding round in January was led by San Francisco-based cryptocurrency-focused investment company Paradigm and Silicon Valley venture capital company Kleiner Perkins.
It also received backing from US-based Coinbase Ventures, Global Founders Capital, Middle East Venture Partners, Cadenza Ventures, Jimco and CMT Digital.
The company was planning to grow its team across the region and hoped to double in size.
Cryptocurrencies have suffered a bad year, experiencing what is known as a “crypto winter”. The sector has contracted to less than $1 trillion, or about a third of its record market value reached in November.
In June, Bitcoin, the biggest cryptocurrency on the market, fell to about $17,000, from a high of $68,990.90 in November.
This was down to FUD — or “fear, uncertainty and doubt”, an acronym used by cryptocurrency enthusiasts to dismiss negative information — which can lead to panic selling.
That was against the backdrop of 40-year high inflation, rising interest rates, recession fears and the collapse of the stable coin Luna when it unpegged from the US dollar, wiping out more than $17bn in cryptocurrency value in May.
Bitcoin fell below $20,000 for a sixth consecutive trading session on Friday, the longest stretch of days that it has dipped under that level since the market was rocked by turmoil in July.
Rain did not immediately respond to a request for comment by The National.
The specs
Engine: 0.8-litre four cylinder
Power: 70bhp
Torque: 66Nm
Transmission: four-speed manual
Price: $1,075 new in 1967, now valued at $40,000
On sale: Models from 1966 to 1970
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Q&A with Dash Berlin
Welcome back. What was it like to return to RAK and to play for fans out here again?
It’s an amazing feeling to be back in the passionate UAE again. Seeing the fans having a great time that is what it’s all about.
You're currently touring the globe as part of your Legends of the Feels Tour. How important is it to you to include the Middle East in the schedule?
The tour is doing really well and is extensive and intensive at the same time travelling all over the globe. My Middle Eastern fans are very dear to me, it’s good to be back.
You mix tracks that people know and love, but you also have a visually impressive set too (graphics etc). Is that the secret recipe to Dash Berlin's live gigs?
People enjoying the combination of the music and visuals are the key factor in the success of the Legends Of The Feel tour 2018.
Have you had some time to explore Ras al Khaimah too? If so, what have you been up to?
Coming fresh out of Las Vegas where I continue my 7th annual year DJ residency at Marquee, I decided it was a perfect moment to catch some sun rays and enjoy the warm hospitality of Bab Al Bahr.
The specs: 2018 Opel Mokka X
Price, as tested: Dh84,000
Engine: 1.4L, four-cylinder turbo
Transmission: Six-speed auto
Power: 142hp at 4,900rpm
Torque: 200Nm at 1,850rpm
Fuel economy, combined: 6.5L / 100km
