Abu Dhabi regulator allows Rain to offer crypto services.

Abu Dhabi regulator allows Rain to offer crypto services.

The Growing Acceptance of Blockchain in the UAE

The Abu Dhabi Global Market Financial Services Regulatory Authority has recently granted its Financial Services Permission for cryptocurrency firm Rain to offer brokerage and custody services to residents in the United Arab Emirates (UAE) 1. This regulatory approval marks the increasing acceptance and integration of blockchain technology in the country.

Rain, a crypto trading firm, expressed its excitement about the approval, stating that it will enable institutional and retail users in the UAE to buy, sell, trade, and store virtual assets through their platform. To ensure user protection, Rain has partnered with a local bank and operates under the supervision of a local regulator and a thorough legal framework 2.

The Road to Approval

Rain’s journey towards obtaining this regulatory permission began in 2018, when they were one of the first exchanges to inquire about licensure following the release of the virtual asset framework by the Abu Dhabi Global Market (ADGM) 3. This demonstrates Rain’s commitment to meeting regulatory requirements and highlights the thoroughness of the regulatory process.

The ADGM’s proactive approach towards virtual asset regulation reflects the UAE’s recognition of the potential benefits and importance of blockchain technology. This forward-thinking regulatory environment fosters innovation and reinforces the UAE’s position as a hub for blockchain development and adoption.

UAE’s Growing Blockchain Ecosystem

The recent approval granted to Rain is not an isolated occurrence. In November 2022, crypto exchange Binance also received regulatory permission to operate in Abu Dhabi after obtaining in-principle approval from the financial watchdog 4. This regulatory acceptance comes at a time when the crypto market experienced a major crash and several major firms faced challenges, including the collapse of FTX.

Rain, with its headquarters in Bahrain, focuses primarily on offering crypto services across the Middle East and Turkey 5. The approval received by both Rain and Binance from the ADGM signifies the UAE’s commitment to embracing blockchain technology and fostering a robust blockchain ecosystem in the region.

However, it is important to note that not all crypto platforms have received positive regulatory outcomes in the UAE. Dubai’s Virtual Assets Regulatory Authority issued notices to executives of digital asset platform Open Exchange in May and suspended BitOasis’ license in July 6. These actions demonstrate the authorities’ emphasis on ensuring compliance and maintaining the integrity of the market.

UAE as a Pro-Bitcoin Mining Destination

Beyond regulatory approvals for crypto platforms, the UAE has also emerged as a pro-Bitcoin mining destination in the Middle East 7. The country’s favorable business environment, access to renewable energy sources, and government initiatives to attract blockchain-based businesses have contributed to this development.

With its strategic location and supportive regulations, the UAE has the potential to become a leading player in the global blockchain industry. Its commitment to fostering innovation, combined with its dedication to creating a secure and reliable blockchain ecosystem, positions the UAE as an attractive destination for blockchain companies seeking growth opportunities.

Conclusion

The recent regulatory approval granted by the Abu Dhabi Global Market Financial Services Regulatory Authority to Rain reflects the growing acceptance and integration of blockchain technology in the UAE. The approval highlights the UAE’s commitment to a thorough regulatory process and showcases the country’s dedication to fostering a robust blockchain ecosystem.

As the UAE continues to attract blockchain companies and provide a favorable environment for innovation, it is poised to play a significant role in the global blockchain industry. With its forward-thinking approach, the UAE is cementing its position as a leader in blockchain technology adoption and reaping the benefits of this transformative technology.


[Reference]


  1. Rain Trading Limited (Rain ADGM) has been granted the first Financial Services Permission (FSP) by Abu Dhabi Global Market’s Financial Services Regulatory Authority to operate a virtual assets brokerage and custody service. [@rain](https://twitter.com/rain/status/675702010741860096)↩︎

  2. Rain Trading Limited (Rain ADGM) has been granted the first Financial Services Permission (FSP) by Abu Dhabi Global Market’s Financial Services Regulatory Authority to operate a virtual assets brokerage and custody service. [@rain](https://twitter.com/rain/status/675702010741860096)↩︎

  3. Rain Trading Limited (Rain ADGM) has been granted the first Financial Services Permission (FSP) by Abu Dhabi Global Market’s Financial Services Regulatory Authority to operate a virtual assets brokerage and custody service. [@rain](https://twitter.com/rain/status/675702010741860096)↩︎

  4. Rain Trading Limited (Rain ADGM) has been granted the first Financial Services Permission (FSP) by Abu Dhabi Global Market’s Financial Services Regulatory Authority to operate a virtual assets brokerage and custody service. [@rain](https://twitter.com/rain/status/675702010741860096)↩︎

  5. Rain Trading Limited (Rain ADGM) has been granted the first Financial Services Permission (FSP) by Abu Dhabi Global Market’s Financial Services Regulatory Authority to operate a virtual assets brokerage and custody service. [@rain](https://twitter.com/rain/status/675702010741860096)↩︎

  6. Rain Trading Limited (Rain ADGM) has been granted the first Financial Services Permission (FSP) by Abu Dhabi Global Market’s Financial Services Regulatory Authority to operate a virtual assets brokerage and custody service. [@rain](https://twitter.com/rain/status/675702010741860096)↩︎

  7. UAE emerges as a pro-Bitcoin mining destination in the Middle East↩︎

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