In a move that’s set to bolster the crypto landscape, Rain, a Middle East-based crypto exchange with a firm backing of crypto heavyweight Coinbase, announced recently that it successfully secured a license to conduct operations in the United Arab Emirates (UAE). With the license, Rain now stands proud as a regulated entity in UAE’s crypto space, facilitating smoother transactions between the local UAE dirham fiat and cryptocurrencies. How did this come to pass? Rain managed to acquire the Financial Services Permission (FSP), courtesy of the Financial Services Regulatory Authority in the free trade zone called Abu Dhabi Global Market.
But why the buzz around this development? Notably, this achievement places Rain in the prestigious position of being the first crypto exchange in the UAE with an official license. According to the company’s co-founder and CEO, acquiring this license unfolded over five long years, with the exchange being among the pioneers in pursuing licensure way back in 2018. Besides marking a significant milestone for Rain, the CEO branded UAE as one of the pivotal markets for crypto, thereby amplifying the importance of this new status quo.
Speaking of pivotal markets, it’s no secret that the UAE has consistently ranked among the global hotspots for crypto firms. In fact, countless American crypto enterprises have set up shop in the UAE this year, attributed to discontentment with the US regulatory bodies. The UAE tends to satisfy all the prerequisites: sound regulatory and digital infrastructure meshed with an undeniable flair to captivate global talent. Considering these features, it’s no wonder why the UAE’s Securities & Commodities Authority commenced accepting license applications earlier this year from crypto businesses eager to anchor their operations within UAE’s borders.
Often regarded as a crypto-friendly jurisdiction, Dubai, one of the seven emirates, enjoys immense recognition within crypto circles. Adding to the credentials of the UAE, Binance, known to be the world’s largest crypto exchange by volume, previously disclosed its plans of moving into the Dubai territory in addition to setting up an office in Abu Dhabi after securing the needed licenses.
This development signals an affirmative drift towards regulatory acceptance in the crypto sphere, a factor deemed immensely significant for the future of blockchain technology. Yet it implores us to reflect on the palpable tension between the craving for regulatory certainty in the burgeoning crypto market and the transformative decentralized essence of the blockchain industry.
Source: Cryptonews
