Rain, a prominent trading firm, has recently been given the go-ahead by the Abu Dhabi Global Market Financial Services Regulatory Authority to provide cryptocurrency services. This pivotal move will enable certain UAE-based institutional and retail users to buy, sell, trade, and store virtual assets via the platform, according to a statement made by Rain on July 25th. Rain’s CEO, Joseph Dallago stated that at the partnership with a local bank had also been solidified to facilitate these services, all under a thorough legal framework developed for user protection.
Being one of the first exchanges to inquire about licensure back in 2018, Dallago described this as a 5-year effort, acknowledging the time and dedication required to align with the ADGM’s virtual asset framework. It’s interesting to note that Abu Dhabi has been showing a somewhat positive stance towards blockchain technology and cryptocurrencies. Just last year, in November 2022, Binance, a world-renowned crypto exchange, received similar regulatory permissions from the Abu Dhabi regulator.
However, the Middle-East’s blockchain journey is textured with both strides and setbacks. While Abu Dhabi regulators have favored blockchain firms like Rain and Binance, their fellow Emirati city, Dubai, has expressed differing sentiments. Reports revealed that Dubai’s Virtual Assets Regulatory Authority issued notices to executives of digital asset platform Open Exchange in May and even suspended BitOasis’ license in July.
In closing, this article underlines the undeniable tug of war between progress and prudence in the realm of crypto regulations; illustrating the juxtaposing stances in close geographic proximity. Emerging as a pro-cryptocurrency hub, Abu Dhabi showcases regulatory openness towards blockchain-based firms. Contrastingly, Dubai’s apprehensions illustrate the cautious approach, possibly borne out of concerns about market volatility or security issues. As the landscape of blockchain technology and cryptocurrencies continues to evolve, so does the need for a meaningful conversation about crypto-regulation, demonstrating both its potential to foster innovation and the possible risks that underline the necessity for robust regulation. One way or another, this regional dynamic will continue lighting up novel directions for the future of crypto-regulations on a global scale.
Source: Cointelegraph
