BitMEX-backed crypto exchange Rain on Wednesday announced that it received the crypto-asset module (CRA) license from the Central Bank of Bahrain (CBB) to offer digital asset trading services in the region.
The exchange received the license after operating under the central bank’s regulatory sandbox for two years. It has become the first cryptocurrency exchange in the Middle East to obtain a regulatory license, the announcement detailed.
Backed by big names in the industry
The demand in the region for crypto trading and Rain’s licensed platform also attracted investors’ interest.
The exchange also secured $2.5 million funding round co-led by BitMEX and Blockwater, a digital asset fund based in Bahrain. Other well-known investors including Jimmy Song, Cumberland Minings’ Mike Komarnsky, and Aaron Lasher and Aaron Voisine, co-founders of Breadwallet.
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Commenting on the prospect of the exchange and the funding, Arthur Hayes, co-founder and chief executive of BitMEX, said: “BitMEX Ventures is devoted to encouraging greater global access to cryptocurrency trading as we start to see the maturation of cryptocurrencies as a legitimate asset class.”
“As the first licensed cryptocurrency exchange in the Middle East, Rain has an unprecedented opportunity to tap into the incredible potential that cryptocurrency trading will bring to the region. We believe that Rain will bring greater diversification to Middle-Eastern traders with its exchange offering and experienced team, and we are thrilled to contribute to this defining moment.”
The exchange is planning to utilize the fresh capital to expand its infrastructure by strengthening the engineering needs and also investing in new technologies.
Earlier this year, Finance Magnates reported that Bahrain was gearing up to introduce cryptocurrency regulation in the country. Also, in the neighboring UAE, Bithumb joined hands with Nvelop to start a crypto-fiat trading platform.
Meanwhile, Seychelles-based crypto exchange BitMEX is reportedly facing an investigation in the United States by the Commodities and Futures Trading Commission (CFTC) under suspicion for providing services in the country.