Cryptocurrencies, the exchange Rain is about to obtain an operating license. Important news for the macro region in the cryptocurrency sector.
Rain , a cryptographic exchange exchange of Bahrain, supported by the developer of Bitcoin Jimmy Song, aims to obtain a full operating license in 2019 in order to expand its activities. If successful, the company would be the first regulated digital operator in the macro region, in an industry severely tested by recent hacker attacks.
"The biggest problem in this area is that of trust", co-founders of Rain Yehia Badawy, Abdullah Almoaiqel, AJ Nelson and Joseph Dallago said in a statement. "We want our customers to feel safe when they use our product and we have taken steps to ensure this, including establishing two stable banking partnerships and incorporating banking grade security checks and verifications into our product."
Rain, whose digital platform and custody services allow people to buy, sell and store digital currency in a secure environment, has managed a limited set of activities since November 2017 as part of the process. FinTech sandbox of the Central Bank of Bahrain, destined to support start-ups in the sector. Rain however, it is currently in talks with the authorities to obtain a full license to increase its activities next year.
The total global investment of FinTech it rose to $ 8,2 billion in the third quarter of 2017, compared to $ 6,3 billion in the prior period, according to KPMG's latest Pulse of FinTech report. GCC countries, including Bahrain and the United Arab Emirates, wish to increase their involvement in FinTech as they diversify their economies, and have introduced legal and regulatory reforms to support the rapidly growing sector.
The financial free zone of the United Arab Emirates Abu Dhabi Global Market last year released a guide on virtual currencies and initial coin offerings - the digital version of public share prices - following the high volatility of the trading prices of popular crypto currencies such as Bitcoin. However, in an interview with The National last month, the CEO of ADGM's Financial Services Regulatory Authority said that the industry needs more regulation to combat financial crime risk. "Whenever a coin is stolen or lost, it affects trust in this asset class," said Richard Teng.
Rain's investors include cryptocurrency players Breadwallet, Blockwater, JM Bullion, Capital Markets Trading and bitcoin developer Mr Son. "We will provide the GCC with a digital currency exchange that will meet the highest international standards in terms of prices, products, security and regulation," said the founders.
