The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has granted a full license to Rain, a Bahrain-based virtual asset brokerage. This is the first time that a virtual asset brokerage has received a full license from the FSRA, which is the regulatory body for ADGM, an international financial center in Abu Dhabi.
The Financial Services Regulatory Authority (FSRA) is the independent regulator of financial services and related activities in Abu Dhabi Global Market (ADGM), a leading international financial center in the Middle East. The FSRA is responsible for ensuring that ADGM operates in accordance with the highest standards of governance, transparency and efficiency, and that it fosters a fair, stable and innovative financial market.
The FSRA’s mandate covers a wide range of activities, including banking, insurance, capital markets, asset management, fintech, digital assets, sustainable finance and Islamic finance. The FSRA adopts a risk-based and proportionate approach to regulation, balancing the need to protect consumers and investors with the need to support business growth and innovation. The FSRA also works closely with other regulators and stakeholders, both locally and internationally, to promote cooperation and coordination in the financial sector.
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The FSRA’s vision is to be a trusted and respected regulator that enables a dynamic and sustainable financial ecosystem in ADGM. The FSRA’s mission is to safeguard the integrity and stability of ADGM’s financial system, protect the interests of its participants and support its development as a hub for innovation and excellence. The FSRA’s values are integrity, professionalism, accountability, collaboration and excellence.
Rain is a regulated platform that allows users to buy, sell and store virtual assets such as Bitcoin, Ethereum and Litecoin. Rain was founded in 2016 by four entrepreneurs who participated in the Central Bank of Bahrain’s regulatory sandbox program. In 2019, Rain became the first licensed virtual asset brokerage in the Middle East and North Africa (MENA) region.
Rain’s co-founder and CEO, Yehia Badawy, said that obtaining the FSRA license was a significant milestone for the company and the industry. “We are proud to be the first virtual asset brokerage to receive a full license from the FSRA, which is one of the most respected and forward-thinking regulators in the world. This license will enable us to expand our services and reach more customers in the UAE and beyond, as well as to collaborate with other licensed entities in the ADGM ecosystem,” he said.
Badawy added that Rain’s vision is to build a digital asset ecosystem that connects the MENA region with the global market. “We believe that virtual assets have the potential to transform the financial sector and create more inclusive and efficient systems. We are committed to providing our customers with a secure, compliant and user-friendly platform to access this new asset class,” he said.
The FSRA’s license allows Rain to offer its services to both retail and institutional customers in ADGM. The license also enables Rain to provide custody services for virtual assets, as well as to facilitate fiat-to-virtual asset and virtual asset-to-virtual asset transactions.
The FSRA’s approach to regulating virtual assets is based on its comprehensive Guidance on Regulation of Crypto Asset Activities in ADGM, which was issued in June 2018. The guidance provides a clear and robust framework for the regulation of virtual asset activities, including initial coin offerings (ICOs), exchanges, brokerages, custodians and advisors.
The FSRA’s Chief Executive Officer, Richard Teng, said that the FSRA is pleased to welcome Rain as a fully licensed virtual asset brokerage in ADGM. “Rain’s license is a testament to our progressive and adaptive regulatory framework that fosters innovation and supports the development of the digital asset industry in ADGM and the UAE. We look forward to working with Rain and other stakeholders to further enhance our regulatory regime and position ADGM as a leading international financial center for virtual asset activities,” he said.