Rain, a cryptocurrency exchange based in Bahrain has become the Middle East’s first exchange to receive a regulatory license.
In a related blog post, released on 31st July, the Exchange representatives confiremed that Rain had received a Crypto-Asset Module (CRA) license from the Central Bank of Bahrain.
Rain also disclosed that in the same week of obtaining the license, same company had just closed a $2.5 million funding round which was heavily backed by partners and the Venture Capital arm of BitMEX the crypto derivatives gaint alongside Blockwater a Kuwaiti blockchain funds.
The blog post reads:
As reports suggests, the Middle East market has traditionally proven a tough environment for crypto businesses, specifically those centered around crypto trading and investments.
With this license, Rennes has become the first encrypted currency trading platform in the Middle East to be fully licensed by a regulatory entity and join a limited range of internationally recognized platforms for currency trading.
While this could partly be linked to Islamic banking laws which forbid certain types of transactions, with scholars in different jurisdictions giving conflicting opinions as to whether cryptocurrencies such as Bitcoin (BTC) conform to norms that frown on speculation and interest lending.
It is notable however that Rain did not mention the issue, the exchange company went ahead to instead stress its position as a fully-compliant financial operator and gave some form of assurance on its ability to form meaningful ties with local banks. The blog post continues:
Through licensing, we have demonstrated our commitment to the terms of the encrypted assets unit in terms of capital adequacy, cybersecurity, insurance, reporting, governance and other matters that ensure our readiness to provide our services to both institutional and individual clients.
This pretty sums up the level of interest various governments of the world are beginning to have as it bothers on adoption
This can be buttressed given the fact that July though laced with minor bear market, in comparison with June, saw the additional recognition of cryptocurrency activities across the Arabian Gulf in Iran, where the government took steps to formally condone Bitcoin mining after a period of jockeying within different governmental ministries.