Bahrain-based cryptocurrency exchange Rain has announced that it has obtained the first Financial Services Permission (FSP) from the Financial Services Regulatory Authority of Abu Dhabi Global Market. This permission allows Rain to operate as a virtual assets brokerage and custody service in Abu Dhabi.
With this license, Rain will be able to offer both institutional and retail clients in the UAE the opportunity to buy, sell, and store digital assets. Additionally, the brokerage will provide users with the ability to convert their assets to the UAE dirham.
Joseph Dallago, the co-founder and CEO of Rain, expressed his excitement about the launch in the UAE, stating that Rain is the first licensed retail exchange in the country. He also mentioned that Rain had been actively pursuing licensure since 2018, when the ADGM released their virtual asset framework.
Rain has partnered with a local UAE bank, which will enable residents to fund their accounts within minutes. Dallago emphasized that customer protection is a priority, as they will be subject to the supervision of a local regulator and a comprehensive legal framework.
The move to the UAE by Rain is part of a larger trend, as several prominent cryptocurrency exchanges have recently chosen to expand their operations in the country. In May, Coinbase revealed its consideration of the UAE as a potential strategic hub for international operations. Gemini, led by the Winklevoss twins, also announced plans to acquire a crypto license to serve customers in the UAE as part of its global expansion strategy.
Overall, Rain’s acquisition of the Financial Services Permission in Abu Dhabi marks a significant milestone for the company and further strengthens the UAE’s position as a growing hub for the cryptocurrency industry.