A crypto exchange named Rain in the Gulf Coast kingdom of Bahrain maybe the first MENA exchange to get regulatory permission in the gulf region.
A July 31 blog post reported at Cointelegraph shows that Rain got a “crypto asset module” license from Bahrain’s central bank after gathering $2.5 million of funding, partially from Bit Mex, as well is a Kuwaiti firm called Blockwater.
As William Suberg notes in coverage, headwinds against these exchanges in the middle east are often based on Islamic banking laws.
However, the United Arab Emirates and some of its neighbors, including Bahrain, have achieved the reputation of trying to move quickly on cryptocurrency and blockchain to compete with other countries around the world.
The U.S., for its part, is also participating in this race, although domestically, Bitcoin and blockchain systems are mainly hindered by good old-fashioned American regulatory skepticism and protestations from traditional banking companies – (see the furor over Facebook Libra.)
Bahrain’s exchange would not make it the only country in the region to contemplate further adoption of cryptocurrencies. Recent news shows the country of Iran is taking steps to perhaps launch a central bank cryptocurrency of its own, although much of Iran’s blockchain interest seems to be based on pressure the country faces from international sanctions.
The Rain news might also be good for BitMex CEO Arthur Hayes, who has been battling some pretty strong criticism from Nouriel Roubini in the form of fraud accusations and more after a knock-down, drag-out debate in Taipei earlier this year. Getting in on the ground floor of this regional first could enhance BitMex’s reputation, too.
We’ll bring you more as it develops.
