The crypto realm witnesses yet another milestone with Bahrain-based exchange, Rain, being granted a license to operate a virtual asset brokerage and custody service in the United Arab Emirates (UAE). The announcement came from none other than the CEO and co-founder, Joseph Dallago, who shared the five-year-long journey of negotiations and inquiries ever since the Abu Dhabi Global Market financial freezone promulgated their virtual asset framework.
This regulatory development ushers in a new era of legitimacy and offers a promising outlook for the crypto industry in Abu Dhabi, already renowned as a crypto hub due to its well-defined regulations. With this newly earned license, Rain’s Abu Dhabi unit is in a position to offer its services to institutional clients and certain retail clients in the UAE. In essence, it impels individuals to buy, sell and store virtual assets with heightened security and confidence.
On the flip side, it’s essential to note that this comes after a challenging period for Rain. The crypto winter fallout led the company to lay off dozens of employees last year. However, with the support of its backer, fellow crypto exchange Coinbase, Rain managed to raise $110 million in a Series B funding round, an indicator of persistent investor trust towards the platform. The company, now valued at $500 million, looks forward to courting institutional clients in the market.
Additionally, Rain’s clients gain an added advantage – the ability to seamlessly fund their accounts and the company can open a bank account in the UAE, as shared by co-founder Yehia Badawy in an interview with Reuters. These perks may not seem substantial, but it’s the cumulative small steps like these that can potentially lead to the mass adoption of digital assets.
This news presents a glaring contrast – the uncertain stumbles faced by Rain amidst adverse market conditions versus the optimistic future held by the licensing approval. The very requirement of such regulatory approval reflects the unpredictable yet intriguing nature of the crypto market, constantly flirting between the lines of risk and reward. Where some perceive it as a haven of untapped potential, others might argue for the rigorous oversight and control, justifying the cautious approach to avoid jeopardizing fiat financial systems and consumer interests. Regardless, the implications are clear – the crypto world is gradually stepping out from its cocoon of obscurity, paving its way towards mainstream acceptance.
Source: Coindesk
