Crypto exchange Rain has recently received approval from Abu Dhabi’s Financial Services Regulatory Authority (FSRA) to operate as a virtual asset brokerage in the United Arab Emirates (UAE). This regulatory green light also extends to Rain’s ability to provide custody services for its clients, enabling them to securely store their virtual assets.
The issuance of the Financial Services Permission (FSP) on July 25th marks a significant milestone for Rain, as it now allows the company to cater to both institutional and retail customers by offering services such as buying, selling, and storing virtual assets. Additionally, Rain will be providing a seamless fiat-to-virtual asset on-ramp service in UAE dirhams, making it easier for clients to enter the world of cryptocurrencies.
With the FSP approval, Rain is also eligible to list new crypto asset trading pairs, broadening the range of options available to its users. The approval was granted after Rain successfully met the Accepted Virtual Assets criteria set by the FSRA, ensuring compliance with industry standards.
In an interview, Rain’s CEO Joseph Dallago expressed his excitement about the latest development, highlighting the opportunities it opens up for the company. He mentioned that Rain will be able to open a bank account in the UAE, further facilitating its operations and improving accessibility for its clients. Additionally, clients will have the convenience of funding their accounts using the local payment network.
The Chief of Market Development at ADGM, Arvind Ramamurthy, emphasized the commitment of Abu Dhabi’s financial center to the growth and development of the crypto and digital asset ecosystem. He stated that adding value to this sector is a priority for ADGM, as it also aims to diversify the economy and attract further investments.
Rain’s journey towards obtaining the FSP began in January 2022 when it received an in-principle approval. Prior to that, Rain Financial, the parent company of Rain, successfully raised funds in its Series B funding round, with support from major players like Coinbase and Silicon Valley VC firm Kleiner Perkins.
Overall, the approval given to Rain by Abu Dhabi’s FSRA marks a significant step forward for the UAE’s crypto industry. The establishment of a regulated virtual asset brokerage, along with custody services, provides a secure and compliant platform for investors to participate in the rapidly growing cryptocurrency market. With the added ability to open a bank account and utilize the local payment network, Rain aims to contribute to the digital asset ecosystem in Abu Dhabi and further strengthen the region’s position as a hub for innovation in the financial sector.
