The Middle East’s first licensed Islamic crypto exchange, Rain, has secured an in-principle approval (IPA) for a financial services permission (FSP) from the Abu Dhabi Global Market (ADGM)’s Financial Services Regulatory Authority (FSRA), expanding the Bahraini platform’s operations in the UAE and laying the foundation for it to widen its remit to service customers outside of the GCC.
“While continuing to focus on regional expansion, Rain’s pursuit of an IPA (and eventual FSP) is also part of its desire to offer a safer and more secure space to buy, sell and store cryptocurrencies. As a regulation-led firm, an FSP (once received) would bolster Rain’s reputation as a trusted platform which works together with regulatory bodies to ensure consumer protection in the cryptocurrency sector and build trust among its user base. Additionally, an eventual license to operate in and from the ADGM, with its large institutional and sovereign investor base will enable Rain to attract institutional capital and investors and more funding opportunities to scale the services offered to customers,” shared the firm. The IPA is awarded to Rain’s ADGM-registered entity, Rain Trading.
Rain noted that once it receives its FSP following meeting all IPA requirements, it will be able to offer its services to customers outside the GCC region as well as in the GCC where it is currently operating through its Rain Financial’s subsidiary, Rain Management. The FSP would also allow the digital exchange to list a wider range of virtual asset pairs provided they meet the accepted virtual assets criteria outlined by the FSRA. The ADGM notably introduced a virtual assets framework back in 2018.
The IPA follows a US$110 million Series B funding which Rain will channel toward supporting its expansion plans which include new jurisdictions such as Turkey and Pakistan. The firm will also invest in upgrading its technology infrastructure and doubling its headcount to over 800 this year.