Rain, a Bahrain based cryptocurrency exchange, has graduated to the Central Bank of Bahrain’s (CBB) Regulatory Sandbox. It is in the process of applying for a license as it has passed a Shariah compliance certification for the region, reports the Saudi Gazette.
Rain is backed by Bitcoin Core (BTC) developer Jimmy Song. Shariyah Review Bureau (SRB) is licensed by the Central Bank of Bahrain as a Shariah Advisory firm authorized to issue Shariah compliance certifications.
Successfully obtaining the license would reportedly make Rain the first crypto exchange to operating in the Persian Gulf to be regulated by a central bank. There are at least five other exchanges in the sandbox with Rain, but Rain was the first to enter the regulatory development space and is slated to be the first to exit.
SRB has made certain that Rain’s brokerage service comply with Shariah principles. In August, Saudi Arabia issues a statement that said:
“Virtual currency including, for example but not limited to, the Bitcoins are not approved as official currencies in the kingdom and no parties or individuals are licensed for such practices by regulators in the kingdom.”
While cryptocurrency has not been banned outright in Saudi Arabia and the UAE, there have been open hostility and warnings against its use. Rain was founded in 2016 by four entrepreneurs: Yehia Badawy, Abdullah Almoaiqel, AJ Nelson and Joseph Dallago. Almoaiqel said of the news:
“This is a major milestone in the cryptocurrency and Islamic markets. This is the implementation of Rain’s mission to provide the Middle East with a cryptocurrency exchange that meets the highest standards in terms of regulation, accessibility, security and trust.
“We are excited to open the Islamic markets to cryptocurrency with a Shariah-compliant exchange and a suite of cryptocurrency investment opportunities. We could not be more excited to have graduated the sandbox and are very close to our public launch now.”
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