Coinbase-backed Rain secures crypto license in UAE

Rain crypto exchange has secured a regulatory license from United Arab Emirates (UAE) authorities.

Rain Exchange, a Bitcoin (BTC) trading venue headquartered in Bahrain, has secured regulatory approval from UAE authorities to operate its digital assets brokerage and custody platform.

According to a July 25 report by Reuters, the approval will make it possible for the Coinbase Ventures-backed Rain to offer crypto trading and storage services for retail and institutional clients in the UAE. The exchange will also be able to open a bank account in the region and offer customers crypto-fiat exchange services.

Founded during the crypto summer of 2017, Rain is backed by Coinbase Ventures and Kleiner Perkins. The exchange’s valuation skyrocketed to $500 million following a successful Series B round that raised $110 million in 2022.

UAE attracting web3 firms 

The United States has been quite reluctant to formulate clear-cut and amenable crypto laws to foster the growth of innovative technologies. Together with countries like China, it took the enforcement-style regulatory approach instead. The United Arab Emirates has taken an entirely different route.

Earlier in April, the UAE’s Securities and Commodities Authority (SCA) mandated that all crypto-focused businesses outside the Abu Dhabi Global Market financial free zone obtain a virtual asset service provider (VASP).

The presence of friendly digital assets rules has made the UAE a hotbed for web3 firms, with notable companies like Gemini crypto exchange, OKX, and Binance, amongst others, now expanding operations to the region.

In related news, earlier this month, Dubai’s Virtual Asset Regulatory Authority (VARA) suspended BitOasis from operating in the city, accusing the crypto brokerage firm of failing to adhere to regulatory standards.