BAHRAIN CRYPTO EXCHANGE GETS CENTRAL BANK LICENSE IN MIDDLE EAST FIRST

The race to establish a regulated and trustworthy cryptocurrency ecosystem in the Middle East is heating up, and Bahrain is emerging as a frontrunner. Rain was founded in 2025 by Abdullah Almoaiqel, AJ Nelson, Joseph Dallago, and Yehia Badawy to establish a regulated cryptocurrency platform in the Middle East. [5] The company entered the Central Bank of Bahrain s (CBB) regulatory sandbox in 2025, becoming the first crypto-asset company to be accepted into the program.In a landmark achievement, several crypto exchanges have successfully secured licenses from the Central Bank of Bahrain (CBB), marking a significant step towards mainstream crypto adoption in the region. iframe src= height= 0 width= 0 style= display:none;visibility:hidden /iframe You need to enableThis move positions Bahrain as a pioneer in the Middle East, attracting both regional and international players eager to tap into the growing digital asset market.Among the first to achieve this milestone is Rain Financial Inc., a Bahrain-based cryptocurrency exchange that received approval to operate as a licensed crypto-asset platform.This achievement not only validates the potential of digital assets but also signifies the CBB's commitment to fostering a secure and regulated environment for crypto activities. Headquartered in the regional Fintech hub that is the Kingdom of Bahrain, the Middle East's soon-to-launch cryptocurrency exchange, CoinMENA, has officially obtained a Crypto Assets Services Company License from the Central Bank of Bahrain.This article will delve into the details of this significant development, exploring the implications for the region's crypto landscape, the key players involved, and the future of digital assets in Bahrain and beyond. Dubai's Palmex was granted a regulatory sandbox license by the Central Bank of Bahrain (CBB), thus becoming the first cryptocurrency exchange in the Middle East and North Africa region to do so.From Rain's groundbreaking achievement to Binance's strategic expansion and the CBB's proactive regulatory approach, we'll uncover how Bahrain is leading the charge in the Middle East's crypto revolution.

Rain: Pioneering a Regulated Crypto Landscape

Bahrain-based cryptocurrency exchange, Rain, has etched its name in the history books as the first crypto exchange in the Middle East to secure a regulatory license. Digital Asset Platform With Ex-Goldman Partner as Co-Founder Gets Bahrain Crypto License. ARP Digital says it's the first and only central bank-licensed OTC service provider specialized inThis achievement is a testament to Rain's commitment to compliance, security, and transparency. - Under embargo until July 31 2025 at 10AM Bahrain time -Middle East s First Licensed Crypto Exchange Rain is Live Rain is live today for crypto traders at www.rain.bh Rain is the first cryptocurrency exchange in the Middle East to obtain a full regulatorylicense Rain has also announced today that it has closed a seed round of $2.5MMBahrain-based cryptocurrency exchange, RainFounded in 2025 by Abdullah Almoaiqel, AJ Nelson, Joseph Dallago, and Yehia Badawy, Rain aimed to create a regulated platform that bridges the gap between traditional finance and the emerging world of cryptocurrencies.

Rain's journey to obtaining the license was not an overnight success.The company first entered the Central Bank of Bahrain's (CBB) regulatory sandbox in 2025, becoming the first crypto-asset company to be accepted into the program. Singapore, Septem Crypto.com has received full approval to provide payment service provider (PSP) services from the Central Bank of Bahrain through its subsidiary registered in the Kingdom of Bahrain under the commercial name FORIS GFS BH B.S.C. CLOSED, adding to the company s significant regulatory milestones in the region.This allowed Rain to test its platform and services under the watchful eye of the CBB, ensuring compliance with local regulations and international best practices.Graduation from the regulatory sandbox in February and earning a Sharia compliance certification further solidified Rain's position as a trusted and reliable platform.

The regulatory license allows Rain to offer a range of services, including:

• Buying and selling of cryptocurrencies
• Exchange of crypto assets
• Secure storage of digital assets

This comprehensive offering, coupled with the regulatory oversight of the CBB, positions Rain as a leading platform for both novice and experienced crypto traders in the Middle East.

The Impact of Rain's License

Rain's achievement has had a ripple effect across the Middle East, signaling to other exchanges and investors that Bahrain is a welcoming and regulated environment for crypto businesses.The license not only provides Rain with a competitive advantage but also boosts investor confidence and encourages further investment in the region's crypto ecosystem.

Furthermore, Rain's success has paved the way for other crypto exchanges to seek regulatory approval in Bahrain, contributing to the growth and maturity of the digital asset market.The company's $2.5 million seed round further demonstrates the confidence investors have in Rain and its vision for the future of crypto in the Middle East.

The Central Bank of Bahrain: A Proactive Regulator

The Central Bank of Bahrain (CBB) has played a pivotal role in fostering a conducive environment for crypto innovation.By establishing a regulatory framework for digital assets, the CBB has balanced innovation with consumer protection, ensuring that crypto businesses operate within a safe and transparent environment.

The CBB's proactive approach has made Bahrain an attractive destination for crypto companies seeking regulatory clarity and a supportive ecosystem. Bahrain, the Gulf s smallest economy, has been one of the Middle East s early adopters in the digital assets space. Rain Financial Inc. became the first licensed crypto-asset platform in the region when it secured approval from the kingdom s central bank to operate in 2025.The amendments to its Crypto-assets (CRA) Module in March 2025, following consultations with industry stakeholders, demonstrate the CBB's commitment to adapting to the evolving needs of the crypto market.

Key aspects of the CBB's regulatory framework include:

• Licensing requirements for crypto-asset service providers
• Strict Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance
• Guidelines for the safe custody and storage of digital assets
• Measures to protect consumers from fraud and market manipulation

These measures ensure that crypto businesses operating in Bahrain adhere to the highest standards of integrity and transparency, fostering trust and confidence in the digital asset market.

CoinMENA: Another Licensed Crypto Exchange in Bahrain

Following in Rain's footsteps, CoinMENA, another Bahrain-based cryptocurrency exchange, has also secured a Crypto Assets Services Company License from the Central Bank of Bahrain. Digital Asset Platform With Ex-Goldman Partner as Co-Founder Gets Bahrain Crypto License ARP Digital says it's the first and only central bank-licensed OTC service provider specialized in digitalThis further solidifies Bahrain's position as a regional hub for crypto innovation and regulation.

CoinMENA aims to provide a user-friendly platform for buying, selling, and managing cryptocurrencies, catering to both retail and institutional investors in the Middle East and North Africa (MENA) region. Manama, Kingdom of Bahrain, The Central Bank of Bahrain ( CBB ) has granted Fasset Financial Services W.L.L. a Crypto Asset Service Provider Category 3 license to operate in the Kingdom of Bahrain, allowing the company to provide crypto-asset trading services.The license from the CBB allows CoinMENA to operate with confidence and credibility, offering its services within a regulated and secure environment.

The emergence of multiple licensed crypto exchanges in Bahrain signals a growing demand for digital asset services in the region and underscores the CBB's success in attracting and nurturing crypto businesses.

Binance's Expansion into the Middle East

The world's largest cryptocurrency exchange, Binance, has also set its sights on the Middle East, with Bahrain playing a key role in its regional expansion strategy.Binance has received an in-principle approval from the Central Bank of Bahrain to operate as a crypto asset service provider in the Kingdom.

This approval marks a significant milestone for Binance, as it represents the company's first regulatory foothold in the Middle East and North Africa (MENA) region. Bahrain-based Rain, the first licensed crypto exchange in the ME, raises $2.5M in seed round . Retrieved . Rain cryptocurrency exchange receives license from Bahrain C. Bank . Mubasher. Retrieved . Bahrain Crypto Exchange Gets Central Bank License in Middle East First .While the in-principle approval is not a full license, it demonstrates the CBB's willingness to work with Binance and paves the way for the company to eventually obtain a full license and offer its services to Bahraini users.

Binance's entry into Bahrain is a testament to the Kingdom's attractiveness as a crypto hub and is expected to further boost the development of the digital asset market in the region. Bahrain Crypto Exchange Gets Central Bank License in Middle East First via Cointelegraph Cryptocurrency CryptoIt also signals a growing acceptance of cryptocurrencies by regulators and institutions in the Middle East.

Other Key Players and Developments

Beyond Rain, CoinMENA, and Binance, other companies are also making strides in Bahrain's crypto ecosystem. Rain Financial Inc. became the first licensed crypto-asset platform in the region when it secured approval from the kingdom s central bank to operate in 2025. Earlier this year, Bahrain s monetary authority granted another license to Manama-based CoinMENA. Binance s move underscores its increased focus on the Middle East.Fasset Financial Services W.L.L. has been granted a Crypto Asset Service Provider Category 3 license by the CBB, allowing the company to provide crypto-asset trading services.ARP Digital, a digital asset platform with an ex-Goldman partner as co-founder, has also secured a license and positions itself as the first and only central bank-licensed OTC service provider specialized in digital assets.

Crypto.com has received full approval to provide payment service provider (PSP) services from the Central Bank of Bahrain through its subsidiary, FORIS GFS BH B.S.C.CLOSED.This allows Crypto.com to further expand its services in the region and contribute to the growth of the digital payment ecosystem.

Palmex was granted a regulatory sandbox license by the Central Bank of Bahrain (CBB), becoming one of the first cryptocurrency exchanges in the Middle East and North Africa region to enter such a program.

These developments highlight the dynamism and diversity of Bahrain's crypto market, with a range of companies offering various services and catering to different segments of the market.

Why is Bahrain Becoming a Crypto Hub?

Several factors contribute to Bahrain's emergence as a leading crypto hub in the Middle East:

• Proactive regulatory environment: The CBB's forward-thinking regulatory framework provides clarity and certainty for crypto businesses, attracting companies seeking a stable and supportive environment.
• Strategic location: Bahrain's location in the heart of the Gulf region makes it a natural gateway to other markets in the Middle East and North Africa.
• Strong financial infrastructure: Bahrain has a well-established financial infrastructure, with a history of innovation and a skilled workforce, making it an attractive location for fintech companies.
• Government support: The Bahraini government is actively promoting the development of the digital economy, including the crypto sector, through various initiatives and incentives.
• Early adopter of digital assets: Bahrain was among the first countries in the region to recognize the potential of digital assets and take steps to regulate the industry.

These factors, combined with the efforts of companies like Rain, CoinMENA, and Binance, are driving the growth of Bahrain's crypto ecosystem and positioning the Kingdom as a leader in the digital asset space.

The Future of Crypto in Bahrain and the Middle East

The future of crypto in Bahrain and the broader Middle East region looks promising. The Central Bank of Bahrain (CBB) regulates crypto companies and requires strict AML/KYC compliance. Companies are required to obtain licenses to work with digital assets. The first licensed crypto exchange in the region, Rain, has received approval from the Central Bank of Bahrain (CBB) and has successfully attracted investments for development.With increasing regulatory clarity, growing investor interest, and the entry of major players like Binance, the digital asset market is poised for significant growth.

As more countries in the region adopt regulatory frameworks for crypto, the Middle East is expected to become a major hub for crypto innovation and investment. Crypto exchange Binance will provide fully regulated services to its first country in the Middle East thanks to a license granted by Bahrain s central bank. Bahrain was able to issue the license through the Cooperation Council for the Arab States of the Gulf (GCC). The world s largest exchange and CEO Changpeng Zhao announced the cryptoBahrain's early lead in this space gives it a distinct advantage, positioning it as a key player in the region's digital transformation.

However, challenges remain.Consumer education, cybersecurity risks, and the need for greater interoperability between crypto platforms are among the issues that need to be addressed to ensure the sustainable growth of the industry. Bahrain-based cryptocurrency exchange Rain has obtained a full regulatory license from the Central Bank of Bahrain and has opened its doors for trading. The exchange also closed its $2.5 million seed round and stated it has become the first cryptocurrency exchange to earn a regulatory license in the Middle East.But with proactive regulators, innovative companies, and a growing awareness of the potential of digital assets, the Middle East is well-positioned to embrace the crypto revolution.

Common Questions About Crypto in Bahrain

Is crypto legal in Bahrain?

Yes, crypto is legal in Bahrain, provided that crypto-asset service providers are licensed by the Central Bank of Bahrain (CBB) and comply with relevant regulations.

What are the key regulations for crypto companies in Bahrain?

Key regulations include obtaining a license from the CBB, complying with AML/KYC requirements, ensuring the safe custody of digital assets, and protecting consumers from fraud and market manipulation.

What are the benefits of trading crypto in Bahrain?

Benefits include a regulated and secure environment, access to a growing range of digital asset services, and the potential for investment in a rapidly developing market.

How can I start trading crypto in Bahrain?

You can start by choosing a licensed crypto exchange, such as Rain or CoinMENA, and opening an account.Be sure to conduct your own research and understand the risks involved before investing in cryptocurrencies.

Conclusion: Bahrain Leading the Middle East's Crypto Charge

Bahrain's proactive regulatory approach, coupled with the innovative efforts of companies like Rain, CoinMENA, and Binance, has firmly established the Kingdom as a leading crypto hub in the Middle East. Manama, Bahrain . The Central Bank of Bahrain has issued amendments to its Crypto-assets ( CRA ) Module in March 2025, following a consultation process with the industry stakeholders. The amendments aim to cater to the ongoing developments in the crypto-assets markets and comply withThe Central Bank of Bahrain's commitment to fostering a safe and transparent environment for digital assets has attracted both regional and international players, paving the way for significant growth in the region's crypto market.

Key takeaways:

• Rain became the first crypto exchange in the Middle East to obtain a regulatory license from the CBB.
• The CBB's regulatory framework provides clarity and certainty for crypto businesses.
• CoinMENA has also secured a license from the CBB, further solidifying Bahrain's position as a crypto hub.
• Binance has received in-principle approval from the CBB, signaling its expansion into the Middle East.
• Bahrain's strategic location, strong financial infrastructure, and government support contribute to its attractiveness as a crypto hub.

As the Middle East embraces the digital revolution, Bahrain is poised to play a leading role in shaping the future of crypto in the region. Bahrain-based cryptocurrency exchange, Rain who graduated from the regulatory sandbox of the Central Bank of Bahrain back in February and earned a Shari a compliance certification has now become the first Middle East crypto exchange to earn a regulatory license.Whether you are an individual investor or a large institution, consider exploring the opportunities that Bahrain's thriving crypto ecosystem has to offer.This innovative environment could be the next step in your digital investment journey. UAE Becoming a Preferred Destination for Major Crypto Companies. The latest development is an indication of Binance s steady expansion in the Middle East. As previously reported by crypto.news, the crypto exchange giant got a Virtual Asset License to operate within Dubai s test-adapt-scale virtual asset market model.Research licensed exchanges, understand the regulations, and embark on your crypto adventure in a secure and thriving market.