The Rain cryptocurrency exchange, a Bahrain-based cryptocurrency trading platform, is on the verge of obtaining a license from the nation’s authorities following its successful graduation from the regulatory sandbox created by the Central Bank of Bahrain (CBB).
Rain Graduates from the CBB Sandbox
Per sources close to the matter, Rain, a regulated digital assets exchange and custodian, has become the first crypto-linked business to graduate from the CBB sandbox successfully.
At a time when bitcoin and altcoins have started gaining grounds globally, regulators in various jurisdictions including the U.K, Malta, and the United States, are hard at work formulating robust rules for their cryptosphere in order to avoid being left behind in the crypto and blockchain movement.
Against that backdrop, the Bahraini apex bank created a regulatory sandbox that would allow startups who deal on distributed ledger technology (DLT) based virtual currencies to test their offerings on a limited number of clients over a period before obtaining the relevant licenses that would enable them to launch full operations in the region.
Now, Rain, launched in 2016 by Abdullah Almoaiqel, Yehia Badawy, Joseph Dallago and AJ Nelson, has passed its “sandbox tests” in flying colors and is set to apply for the relevant license from the CBB.
If all goes as planned, Rain will become the first regulated cryptocurrency exchange in Bahrain, a milestone that could attract more fintech firms to crypto-friendly Bahrain.
Shariah Compliance Certification
In addition to outgrowing the sandbox, Rain has also revealed that it has passed a Shariah compliance certification conducted by the Shariah Review Bureau (SRB), an advisory firm launched in 2005 to provide consultation, product structuring, compliance certification, and audit services to clients looking to operate in line with Islamic standards.
Accordingly, the Shariah certification covers three established cryptos including bitcoin (BTC), ether (ETH) and litecoin (LTC) and the firm plans to help family offices, sophisticated investors, and Islamic institutional investors to buy, sell, or store the supported digital assets in a Sharia-compliant way.
Commenting on the development, Rain co-founder, Abdullah Almoiqel expressed his excitement over the firm’s achievement, adding:
“We are opening the Islamic markets to cryptocurrency with a Shariah-compliant exchange and a suite of crypto investment opportunities.”
In October 2018, BTCManager informed that the Islamic Development Bank was looking to issue Islamic Sukuk bonds on the blockchain.