Rain, a Bahrain-based cryptocurrency exchange has closed its $2.5 million seed round, it announced in a statement to MENAbytes. The round was co-led by BitMEX Ventures, the investment arm of the BitMEX, which is a cryptocurrency derivatives trading platform and Kuwait-based cryptocurrency fund, Blockwater. Some other regional investors including Vision Ventures, 500 Startups (MENA), and Taibah Valley also joined the round.
When Rain established contact with the Central Bank of Bahrain (CBB) in February 2017, the team met with some of the regulator’s senior members in an information session on cryptocurrency. Soon after, Rain became the first exchange to enter the CBB’s Regulatory Sandbox Program and worked closely with the regulator for the past two years to provide recommendations from the industry’s perspective.
Islamic banking rules forbid sure varieties of transactions, with students in several jurisdictions giving conflicting critiques as as to whether cryptocurrencies corresponding to Bitcoin (BTC) comply with norms that frown on hypothesis and passion lending.
Rain didn’t point out the problem, as a substitute stressing its place as a fully-compliant monetary operator and talent to shape significant ties with native banks. The weblog publish continues:
“Thru licensing, we now have demonstrated our dedication to the phrases of the encrypted belongings unit on the subject of capital adequacy, cybersecurity, insurance coverage, reporting, governance and different issues that make sure our readiness to offer our services and products to each institutional and particular person purchasers.”
Rain also added cryptocurrency heavyweights Jimmy Song, Mike Komarnsky (founder of Cumberland Mining), Aaron Lasher and Aaron Voisine (co-founders of BRD, formerly Breadwallet), Compound.finance, CMT Digital (worldwide commodities trading firm headquartered in Chicago), and the founding team of JMBullion (largest precious metals brokerage in the United States) as investors.
Rain plans on expanding the team to meet growing customer support and engineering needs, as well as invest in new technology. Rain was founded in 2016 by four entrepreneurs Yehia Badawy, Abdullah Almoaiqel, AJ Nelson and Joseph Dallago.