When in mid 2017, the Central Bank of Bahrain(CBB) launched its regulatory Sandbox, it set forth a virtual platform enabling firms in the fintech (financial technology)space to develop their products under a safe, measured and pragmatic manner. Among the several that were welcomed, Crypto Currency service providers and exchanges became one of the key businesses to have been approved for the regulatory sandbox by the country’s central bank. Reckoning major opportunity in the same, 2016 established Rain Financial pursued to tap into the new market that initiated with a two-four hour presentation to the CBB ensuing to become one of the leading crypto currency service providers headquartered in the Kingdom of Bahrain.

Reportedly becoming the first digital currency exchange to complete the sandbox, Rain Financial is the most regulated and secured digital currency exchange in the MENA region and the only company to have been approved by a central bank then. Undergoing rigorous testing for around 1.5 years as stated by Abdullah Almoaiqel, Co-Founder, Rain Financial, the company became the first to get licensed in Bahrain and the MidEast for their exchange, sale and buying of crypto currency for local currency. Moreover, Rain Financial serves both retails and institutions, enabling exchanges or withdrawals in a regulatory compliant manner for the lowest fees in the region.

Rain financial serves both retails and institutions, enabling exchanges or withdrawals in a regulatory compliant manner for the lowest fees in the region

The CBB Implements Crypto Asset Rules
Bahrain’s vigorous efforts in upscaling its fintech space had placed it in a position to be open to innovative and novel fintech advancements, thus welcoming cryptoasset into its ecosystem. This being the first, the CBB based on sandbox consequences, developed cryptoasset rules that deal with the rules for licensing, governance, minimum capital, control environment, risk management, AML/CFT, standards of business conduct, avoidance of conflicts of interest, reporting, and cybersecurity for crypto asset services. Moreover, for those licensed by the CBB as crypto asset exchanges, the regulatory framework also contains rules relevant to order matching, pre and post trade transparency, measures to avoid market manipulation & market abuse, and conflicts of interest. Thus, on graduating from the sandbox receiving a seed round funding of $2.5 million (rounds that were colead by BitMex Ventures and Kuwait based crypto currency fund, Blockwater and other regional participants include Vision Ventures, 500 Startups MENA, and Taibah Valley), Rain Financial deemed to become the first to bring crypto currency to Bahrain and the MidEast.

Headquartered in the Kingdom of Bahrain, offering services to customers from all over the Mid-East, Rain Financial aims to further its services beyond horizons depending on the availability of suitable regulations in those regions as well. Citing better grip over the crypto based on extensive prior experiences, Rain Financial’s founders Yehia Badawy, AJ Nelson, Joseph Dellago & Abdullah have alluded further scope for the company in terms of expansion to take on new markets. Abdullah states, “Our plans going forward is just expansion and opening branches in other GCC areas, in the MENA region in general. We also do hold special interest in India, as it is one of the biggest markets in the world, but lacks the regulations as of now. However, in the long run, anything we do will always involve bit coin and other crypto assets, and we will be that company base that connects clients through the traffic in and out of this system, making us excited over what is to happen over the next two decades”.