The Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority has recently granted financial services permission to cryptocurrency firm Rain, enabling it to offer brokerage and custody services to residents in the United Arab Emirates (UAE). The regulatory approval marks a significant milestone for Rain, as it allows both institutional and retail users to engage in buying, selling, trading, and securely storing virtual assets through their platform.
Abu Dhabi clears rain to offer retail and institutional services
Rain’s CEO, Joseph Dallago, expressed the company’s excitement at receiving the regulatory green light, stating that they have been actively working towards licensure since 2018 when the ADGM introduced their virtual asset framework. The five-year effort to obtain the necessary permissions and comply with the stringent regulatory requirements demonstrates the company’s commitment to providing a secure and compliant cryptocurrency trading environment for its users.
As part of its compliance strategy, Rain has also partnered with a local bank to facilitate its cryptocurrency services. This collaboration operates under the supervision of a local regulator and adheres to a thorough legal framework aimed at safeguarding user protection. By establishing strong partnerships and complying with regulatory guidelines, Rain aims to build trust and confidence among its clientele.
The regulatory approval granted to Rain comes as a continuation of the UAE’s efforts to embrace the emerging cryptocurrency industry while ensuring proper oversight and investor protection. In November 2022, crypto exchange Binance also received similar regulatory permission in Abu Dhabi after obtaining in-principle approval from the financial watchdog in April of that year. These approvals showcase the country’s willingness to engage with reputable cryptocurrency platforms under a comprehensive regulatory framework.
UAE continues its progressive stance towards crypto
Rain’s focus is primarily on offering cryptocurrency services across the Middle East and Turkey, with its headquarters based in Bahrain. The company’s expansion into the UAE market is expected to foster greater accessibility and adoption of cryptocurrencies in the region. As a key player in the cryptocurrency space, Rain aims to cater to the diverse needs of both institutional and retail investors, thereby contributing to the growth of the digital asset market in the Middle East.
While Rain and Binance have secured regulatory approvals from the Abu Dhabi regulator, it is important to note that the cryptocurrency industry still faces scrutiny from various regulatory bodies. In May, Dubai’s Virtual Assets Regulatory Authority issued notices to executives of the digital asset platform Open Exchange, indicating the ongoing vigilance in overseeing cryptocurrency activities within the region. Additionally, BitOasis had its license suspended in July, underscoring the need for strict adherence to regulatory guidelines for sustainable operations in the UAE’s cryptocurrency landscape.
As the cryptocurrency market continues to evolve, regulatory clarity and investor protection remain top priorities for both authorities and cryptocurrency firms. Abu Dhabi’s proactive approach to granting regulatory approvals fosters an environment of transparency and trust, which is essential for the healthy growth of the digital asset industry. The recent regulatory approval granted to Rain by the Abu Dhabi Global Market Financial Services Regulatory Authority marks a significant step forward for the cryptocurrency firm.
With the permission to offer brokerage and custody services, Rain can now cater to institutional and retail users in the UAE, facilitating the buying, selling, trading, and secure storage of virtual assets. This development highlights the UAE’s commitment to embracing the cryptocurrency industry under a robust regulatory framework and positions Rain as a reputable player in the region’s growing digital asset market. However, as the industry matures, adherence to regulatory guidelines and user protection will remain crucial for sustained growth and success in the dynamic world of cryptocurrencies.
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