The cryptocurrency landscape in the Middle East has evolved rapidly over the past decade, with regulatory clarity and institutional adoption driving significant innovation. At the forefront of this transformation stands Rain, a Bahrain-based digital asset exchange that has emerged as a key player in the region’s financial technology revolution. As the first licensed crypto-asset service provider in the Middle East, Rain has set a benchmark for compliance, security, and strategic growth in a market increasingly receptive to blockchain technology.
Founding and Vision
Founded in 2017 by Joseph Dallago, Adam Jon Nelson, Yehia Badawy, and Abdullah Almoaiqel, Rain was conceived with a clear mission: to build a regulated cryptocurrency platform tailored for the Middle East and North Africa (MENA) region. The founders recognized early on that long-term success in this space would depend not just on technology, but on trust—particularly in a region where financial systems are deeply intertwined with cultural and religious values.
To establish credibility, Rain entered the Central Bank of Bahrain’s (CBB) regulatory sandbox in 2017, becoming the first crypto company to be accepted into the program. This milestone allowed Rain to operate under close supervision while developing compliant products aligned with both local regulations and Shariah principles, a critical factor for gaining public and institutional trust across the Gulf.
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Regulatory Milestones and Regional Expansion
Rain’s commitment to regulation paid off in 2019 when its subsidiary, Rain Management W.L.L., received full licensing from the Central Bank of Bahrain—making it the first licensed crypto-asset service provider in the Middle East. This license covered core services such as crypto-to-fiat trading, custody, and brokerage, positioning Rain as a legitimate financial intermediary rather than just a speculative trading venue.
Building on this foundation, Rain expanded into the United Arab Emirates through Rain Trading Limited, which secured regulatory approval from the Abu Dhabi Global Market’s Financial Services Regulatory Authority (ADGM FSRA) in 2023. This approval enabled Rain to offer virtual asset brokerage and custody services to institutional clients, including asset managers—a strategic move toward professionalizing digital asset access in the region.
Funding and Market Position
Rain’s regulatory-first approach has attracted strong investor confidence. The company raised $2.5 million in seed funding in 2017, co-led by BitMEX Ventures. In 2021, it secured $6 million in a Series A round led by Middle East Venture Partners (MEVP), reinforcing its regional roots.
The most significant validation came in January 2022, when Rain closed an $110 million Series B round led by global heavyweights Paradigm and Kleiner Perkins. Participation from Coinbase Ventures, Global Founders Capital, and Cadenza Ventures underscored international belief in Rain’s model. At the time, the funding positioned Rain as one of the most capitalized fintech startups in the Gulf, ranking #6 on Forbes’ list of the 50 most-funded startups in 2022.
This capital infusion was earmarked for expanding operations across MENA, enhancing technological infrastructure, and deepening compliance frameworks—key steps in serving both retail and institutional investors.
Zero-Fee Trading Model
In April 2022, Rain introduced a groundbreaking zero percent trading fee structure for users across the MENA region. This move was designed to lower barriers to entry, encourage broader adoption, and differentiate Rain from global competitors who often charge variable fees based on volume or user tier.
While some questioned the sustainability of such a model, Rain argued that increased user engagement and higher transaction volumes would offset lost revenue over time. More importantly, the policy aligned with its mission of democratizing access to digital assets in a region where financial inclusion remains a priority.
Workforce Adjustments Amid Market Downturn
Like many crypto firms, Rain faced challenges during the 2022 market downturn, when Bitcoin lost over 50% of its value and more than $2 trillion was erased from the total crypto market cap. In mid-2022, Rain implemented workforce reductions to adapt to declining trading volumes and tighter economic conditions.
Despite these cuts, the company maintained its core operations and continued investing in product development. Industry analysts noted that Rain’s strong balance sheet—bolstered by recent funding—gave it greater resilience compared to less-capitalized peers.
Security Breach and Response
In April 2024, Rain suffered a security breach resulting in the loss of approximately $16 million in cryptocurrency. The U.S. Department of Justice attributed the attack to the North Korean state-sponsored hacking group Lazarus Group. The attackers used social engineering tactics on LinkedIn, posing as recruiters to trick an employee into downloading malware that compromised private keys.
Rain responded swiftly by suspending affected systems and working with cybersecurity firms and law enforcement to trace stolen funds. Partial recovery of assets was reported, highlighting improvements in blockchain forensics and cross-border cooperation.
The incident served as a sobering reminder of persistent cyber threats in the digital asset space—even for regulated platforms. However, Rain’s transparency in communicating the breach helped preserve user trust.
Frequently Asked Questions (FAQ)
Q: Is Rain a regulated cryptocurrency exchange?
A: Yes. Rain Management W.L.L. is licensed by the Central Bank of Bahrain (CBB), and Rain Trading Limited is authorized by ADGM’s FSRA in Abu Dhabi—making it one of the most regulated crypto platforms in the Middle East.
Q: Does Rain charge trading fees?
A: No. Since April 2022, Rain has operated a zero-percent trading fee model to promote accessibility and adoption across the MENA region.
Q: What cryptocurrencies does Rain support?
A: While specific offerings may vary, Rain supports major digital assets like Bitcoin (BTC), Ethereum (ETH), and select stablecoins. Institutional clients can access additional assets through bespoke brokerage services.
Q: How did Rain respond to the 2024 security breach?
A: Following the $16 million hack linked to the Lazarus Group, Rain immediately isolated affected systems, engaged cybersecurity experts, and collaborated with authorities. Some funds were recovered through blockchain tracking.
Q: Who are Rain’s key investors?
A: Major backers include Paradigm, Kleiner Perkins, Coinbase Ventures, MEVP, Global Founders Capital, and Cadenza Ventures—highlighting strong institutional confidence.
Q: Can non-residents use Rain’s services?
A: Access is primarily focused on residents within regulated jurisdictions like Bahrain and the UAE, though eligibility may vary based on local compliance requirements.
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Core Keywords Integration
Throughout its journey, Rain has consistently emphasized cryptocurrency exchange, regulatory compliance, digital asset custody, MENA fintech, blockchain security, institutional crypto services, zero-fee trading, and Shariah-compliant finance—all of which reflect its unique positioning at the intersection of innovation and regulation.
As digital asset adoption accelerates across emerging markets, platforms like Rain demonstrate that sustainable growth stems not from hype, but from building trustworthy ecosystems grounded in law, transparency, and user protection.
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