Middle East Crypto Exchange Rain said on Tuesday that its Abu Dhabi branch has obtained a license to operate a virtual asset brokerage and custody service for clients in the United Arab Emirates.
Bahrain-based Rain, backed by Coinbasesaid his company, based in the Abu Dhabi Global Market Financial Free Zone, will now offer institutional clients and some retail clients in the UAE the ability to buy, sell and store virtual assets.
Rain will also be able to open a bank account United Arab Emiratesand allow customers in the country to top up their own accounts when using the local payment network, co-founder Yehia Badawy said in an interview on Tuesday.
Local wealth managers have been reluctant to partner with crypto firms without a domestic license, he continued, adding that they feel more comfortable now that they have received regulatory approval.
“This license allows us to increase demand from institutional investors,” he said.
Rain was founded in 2017 by Badawy and three others and backed by Silicon Valley venture capital firm Kleiner Perkins and Coinbase Ventures.
Last year, the company raised US$110 million (approximately Rs 900 million) in a Series B funding round and valued the company at US$500 million (approximately Rs 4,100 million). Rain, which has units registered in Bahrain and Turkey, said it will use the proceeds for regional expansion.
The UAE has attempted to attract some of the world’s greatest crypto companies. It quickly caught on to enable payments via cryptocurrencies in areas like real estate and school fees, boosting adoption rates and transaction volumes.
It is also attempting to develop virtual asset regulation to attract new forms of business as economic competition in the Gulf region intensifies.
The world’s largest stock exchange, binance, is located in the country. another exchange Twinswill probably work there soon.
© Thomson Reuters 2023
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