Bahrein-based Rain became the first cryptocurrency exchange in the Middle East granted by the national regulator to work with cryptocurrencies.

On 30 July, Rain reported in a blog post that it received a license from the Central Bank of Bahrain to launch a new module focused on cryptocurrency assets trading.

“With this license, Rain has become the first cryptocurrency trading platform in the Middle East to be fully licensed by a regulatory entity and has joined a limited range of internationally recognized platforms for encrypted currencies trading”.

Thanks to a license, Rain will be able to operate as a financial services operator and open accounts with Bahraini-based banks.

“After obtaining the license, we are able to establish sustainable relationships with bank partners and payment partners, leading to more stable banking relationships, better pricing, lower fees and more reliable deposit and withdrawals.”

Rain was established in 2016.

"Focusing on the region, we started addressing regulators to create a legal framework for encrypted currencies. This achievement [license] is the result of a long journey over a period of three years."

The Middle East market is difficult for cryptocurrency trading services to grow, because Islamic bank laws prohibit certain types of transactions, and religious scholars in different countries give contradicting to each outher comments on whether cryptocurrencies, such as bitcoins, comply with Sharia norms that prohibit speculation and interest-rate lending.

In addition, Rain announced the successful closure of a round of financing, during which the exchange managed to attract $2.5 million. The list of investment round participants includes global cryptocurrency derivatives trading platform BitMEX and Blockwater from Kuwait.