BAHRAIN CENTRAL BANK RELEASES FIRST CRYPTO EXCHANGE TO GRADUATE ITS REGULATORY SANDBOX

The Kingdom of Bahrain is rapidly solidifying its position as a pioneering force in the Middle East's burgeoning cryptocurrency landscape.In a landmark achievement, Rain, a Bahrain-based and Sharia-compliant cryptocurrency exchange, has become the first to successfully graduate from the Central Bank of Bahrain's (CBB) Regulatory Sandbox. Middle East focused exchange Rain has been operating within the regulatory sandbox of the Central Bank of Bahrain (CBB) since December 2025 and announcing their graduation today Rain is a cryptocurrency exchange that is now Shari a compliant (certified by Shariyah Review Bureau) The company is targeting a 2025 launch rain.bh Rain, a Bahrain based cryptocurrency [ ]This milestone not only underscores Bahrain's commitment to fostering innovation within its financial sector but also provides a clear regulatory pathway for other crypto firms looking to establish themselves in the region.The CBB's Regulatory Sandbox, launched with the aim of nurturing fintech innovation, provides a controlled environment for startups to test and refine their products and services while adhering to local regulations and Sharia principles.Rain's graduation signifies a major step forward in the maturation of the crypto industry within the Middle East, demonstrating that digital asset businesses can thrive under a well-defined and supportive regulatory framework. Bahrain-based Shariah compliant cryptocurrency exchange Rain has first completed the Central Bank of Bahrain s (CBB) Regulatory Sandbox, the Saudi Gazette reported on Feb. 26. Rain, whichThis development promises to attract further investment and innovation, positioning Bahrain as a key hub for cryptocurrency and blockchain technology.

Rain's Journey Through the Regulatory Sandbox

Rain's journey to becoming the first crypto exchange to graduate from the CBB's Regulatory Sandbox is a testament to their dedication to compliance and innovation. 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.Let's delve into the details of their experience and what it means for the broader crypto ecosystem.

Entering the Sandbox: A Pioneering Move

Rain's entry into the CBB's Regulatory Sandbox in 2025 marked a pivotal moment, as they became the first crypto-asset company to be accepted into this innovative program. Bahrain-based cryptocurrency exchange, Rain, announced on Wednesday that it has acquired a licence from the central bank and has closed a seed round of $2.5 million. Rain is the first cryptocurrency exchange to earn a regulatory licence in the Middle East and joins an elite group of exchanges internationally, a statement said.This move demonstrated Rain's commitment to operating within a regulated environment and adhering to the highest standards of compliance.The Sandbox offered a unique opportunity to collaborate directly with the CBB, allowing Rain to test and refine their platform under close regulatory supervision.

By being the first to enter, Rain also paved the way for other crypto businesses in the region, helping to establish a clear path for regulatory approval. With this, the homegrown digital currency trading platform has emerged the first-of-its-kind to have completed the sandbox and is now preparing to obtain relevant licenses under the Kingdom s existing regulatory policies.This pioneering spirit is crucial for fostering a healthy and sustainable crypto ecosystem.

Collaboration and Compliance

The Regulatory Sandbox provided Rain with a valuable opportunity to collaborate closely with the CBB.This collaboration was essential for ensuring that Rain's platform aligned with both local regulations and Sharia principles.The CBB's guidance helped Rain navigate the complexities of the regulatory landscape, ensuring that their operations were fully compliant and transparent.

This collaborative approach is a key strength of Bahrain's regulatory framework, fostering a constructive dialogue between regulators and industry participants.This ensures that regulations are both effective and supportive of innovation.

Adhering to Sharia Principles

A unique aspect of Rain's journey was their commitment to Sharia compliance. Manama-Bahrain: Rain, a Bahrain based cryptocurrency exchange, has today announced its successful graduation of the Central Bank of Bahrain s (CBB) Regulatory Sandbox. It is the first cryptocurrency exchange to graduate the sandbox and is in the process of applying for the relevant license.As a Sharia-compliant cryptocurrency exchange, Rain ensures that its operations adhere to the principles of Islamic finance. Singapore-based cryptocurrency exchange Crypto.com continues to grow its presence in the MENA region with the receipt of a full payment service provider license from the Central Bank of Bahrain (CBB). The license will permit the cryptocurrency exchange s local subsidiary to offer e-money and fiat sThis is a crucial consideration in the Middle East, where Sharia compliance is highly valued.Rain's adherence to Sharia principles has likely contributed to their success in navigating the regulatory landscape and gaining the trust of local investors and users.

This commitment to ethical and responsible financial practices further enhances Rain's credibility and appeal within the region.

Impact of Graduation: Licensing and Funding

Rain's successful graduation from the Regulatory Sandbox has had several significant impacts, including the acquisition of a license from the Central Bank of Bahrain and the successful closing of a $2.5 million seed round.

Acquiring a Regulatory License

One of the most significant outcomes of Rain's graduation from the Regulatory Sandbox is the acquisition of a license from the Central Bank of Bahrain.This license allows Rain to operate as a regulated cryptocurrency exchange within Bahrain, providing a level of legitimacy and trust that is essential for attracting users and investors. On Decem, the Central Bank of Nigeria (CBN) published an invitation on its website for interested startups and innovators to apply to its Regulatory Sandbox. The CBN s Sandbox is being launched in partnership with Emtech - a modern central banking infrastructure provider - and has been anticipated since the publication of the CBN s Framework for Regulatory Sandbox OperationsRain is the first cryptocurrency exchange to earn such a regulatory licence in the Middle East, joining an elite group of exchanges internationally.

This license not only validates Rain's compliance with regulatory requirements but also provides them with a competitive advantage over unregulated exchanges.

Securing $2.5 Million in Funding

In conjunction with their regulatory success, Rain also announced the closing of a $2.5 million seed round. Rain, a Bahrain based cryptocurrency exchange, has today announced its successful graduation of the Central Bank of Bahrain s (CBB) Regulatory Sandbox. It is the first cryptocurrency exchange to graduate the sandbox and is in the process of applying for the relevant license.This funding will enable Rain to expand its operations, enhance its platform, and reach a wider audience. The company entered the Central Bank of Bahrain s (CBB) regulatory sandbox program in 2025, becoming the first crypto-asset company to be accepted into the program. This initiative provided Rain the opportunity to collaborate with the CBB, working within the framework of the regulatory sandbox to align with local and Shariah standards [39The successful funding round is a clear indication of investor confidence in Rain's business model and its potential for growth within the Middle East.

The backing of investors like Kuwaiti crypto fund Blockwater and BitMEX Ventures further solidifies Rain's position as a leading cryptocurrency exchange in the region.

Bahrain: A Growing Hub for Crypto Regulation

Bahrain's proactive approach to regulating the cryptocurrency industry has positioned it as a leading hub for crypto innovation in the Middle East.Several factors contribute to Bahrain's attractiveness as a crypto-friendly jurisdiction.

Forward-Thinking Regulatory Environment

The Central Bank of Bahrain has been at the forefront of developing a forward-thinking regulatory environment for cryptocurrencies. Published: 2:22 p.m. By: Sam Bridge Rain is the first cryptocurrency exchange to earn a regulatory licence in the region, closes $2.5 million funding round Bahrain-based cryptocurrency exchange, Rain, announced on Wednesday that it has acquired a licence from the central bank and has closed a seed round of $2.5 million. [ ]The CBB's establishment of the Regulatory Sandbox is a testament to their commitment to fostering innovation while ensuring consumer protection. Bolsa cripto em conformidade com a sharia sediada no Bahrein, concluiu pela primeira vez a an lise de regulamenta o do Banco Central do Bahrein (CBB), informou a Gazeta Saudita em 26 de fevereiro. Rain, que foi fundada em 2025, supostamente se tornou a primeira exchange de moeda digital a completar o essa an lise com sucesso. A bolsa teriaThe CBB has also issued amendments to its Crypto-assets (CRA) Module, demonstrating its responsiveness to the evolving needs of the crypto market.

This proactive approach to regulation has attracted major cryptocurrency exchanges like Crypto.com to seek regulatory approval in Bahrain.

Strategic Location and Infrastructure

Bahrain's strategic location in the Middle East, combined with its well-developed financial infrastructure, makes it an ideal location for cryptocurrency businesses.The Kingdom's strong legal and regulatory framework, along with its access to skilled talent, further enhances its attractiveness as a crypto hub.

Moreover, Bahrain's commitment to economic diversification and its focus on developing a digital economy align perfectly with the growth of the cryptocurrency industry.

Government Support and Initiatives

The Bahraini government is actively supporting the growth of the fintech sector through various initiatives and programs.These initiatives aim to promote innovation, attract investment, and create a supportive ecosystem for startups. 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 CBB's Regulatory Sandbox is just one example of the government's commitment to fostering fintech innovation.

This government support is crucial for creating a vibrant and sustainable crypto ecosystem in Bahrain.

Crypto.com's Expansion in the MENA Region

The growing interest in the MENA (Middle East and North Africa) region is evidenced by Crypto.com's strategic moves to establish a strong presence there. Rain, a Bahrain-based cryptocurrency exchange, on Tuesday announced its successful graduation from the Central Bank of Bahrain s Regulatory Sandbox. It is the first cryptocurrency exchange to graduate the sandbox and is in the process of applying for the relevant licence, a statement said.Crypto.com's receipt of a full payment service provider license from the Central Bank of Bahrain (CBB) highlights the region's appeal to major crypto players.

Regulatory Approval in Dubai

Prior to their license in Bahrain, Crypto.com secured regulatory approval in Dubai, signaling their commitment to the region. Rain, a Bahrain based cryptocurrency exchange, has Tuesday announced its successful graduation of the Central Bank of Bahrain s (CBB) Regulatory Sandbox. It is the first cryptocurrency exchange to graduate the sandbox and is in the process of applying for the relevant license. To add more legitimacy and gain the trust of its customers, RainThis expansion into both Bahrain and Dubai demonstrates Crypto.com's strategic vision for tapping into the growing demand for cryptocurrencies in the Middle East.

These regulatory approvals are essential for building trust and credibility with users and investors in the region.

Full Payment Service Provider License

The full payment service provider license granted to Crypto.com's local subsidiary in Bahrain allows them to offer e-money and fiat currency services.This license enables Crypto.com to provide a wider range of services to its customers in Bahrain, including the ability to deposit and withdraw funds in local currency.

This enhanced service offering makes Crypto.com more competitive and attractive to users in the region.

The Central Bank of Bahrain's Commitment to Fintech

The Central Bank of Bahrain's dedication to developing the fintech ecosystem is a cornerstone of Bahrain's success in attracting cryptocurrency businesses. This move is part of Crypto.com s strategy to enhance its presence in the region, following its earlier regulatory approval in Dubai. Bahrain: A Growing Hub for Crypto Regulation. Bahrain has become an increasingly important player in the cryptocurrency space, attracting major exchanges with its forward-thinking regulatory environment. InThe CBB's initiatives aim to enhance the competitiveness of the financial services sector and support the Kingdom's transition towards a diverse and digital economy.

Regulatory Sandbox

The Regulatory Sandbox is a key component of the CBB's fintech strategy. Bahrain-based digital asset exchange Rain has acquired a crypto-asset module (CRA) license from the Central Bank of Bahrain, according to a press release shared with The Daily Hodl. Rain is one of the first licensed crypto-asset exchanges in the Middle East. It s backed by investments from Kuwaiti crypto fund Blockwater and BitMEX Ventures, the venture [ ]It provides a safe and controlled environment for startups to test and refine their innovative financial products and services.The Sandbox allows the CBB to monitor the activities of these companies and provide guidance to ensure compliance with regulatory requirements.

The success of Rain's graduation from the Regulatory Sandbox demonstrates the effectiveness of this approach.

Amendments to Crypto-Assets Module

The CBB's ongoing efforts to update its regulatory framework for crypto-assets are essential for keeping pace with the rapid evolution of the industry.The amendments to the Crypto-assets (CRA) Module reflect the CBB's commitment to providing a clear and comprehensive regulatory framework for cryptocurrency businesses.

These amendments are designed to address emerging risks and challenges while fostering innovation and growth.

Impact on the Future of Cryptocurrency in the Middle East

Rain's graduation from the CBB's Regulatory Sandbox has far-reaching implications for the future of cryptocurrency in the Middle East.This milestone sets a precedent for other crypto businesses and demonstrates that it is possible to operate successfully within a regulated environment.

Increased Regulatory Clarity

Rain's success provides increased regulatory clarity for other cryptocurrency businesses looking to establish themselves in the Middle East.The CBB's Regulatory Sandbox provides a clear pathway for companies to obtain the necessary licenses and approvals to operate legally in Bahrain.

This regulatory clarity is essential for attracting investment and fostering innovation in the region.

Attracting Investment and Talent

Bahrain's growing reputation as a crypto-friendly jurisdiction is attracting investment and talent to the region. In affirmation of his statement, Rain Financial became the first crypto exchange to join the Sandbox experiment in Bahrain. Sooner than later, the Central Bank of Bahrain (CBB) issued Rain Financial the license to operate as a crypto service provider in 2025.The success of companies like Rain demonstrates that Bahrain is a viable location for cryptocurrency businesses to thrive.

This influx of investment and talent will further strengthen Bahrain's position as a leading crypto hub in the Middle East.

Encouraging Innovation

The CBB's commitment to fintech innovation is encouraging the development of new and innovative cryptocurrency products and services. Manama, Bahrain As part of its efforts to further develop the FinTech ecosystem and enhance the competitiveness of the financial services sector, and in line with the Kingdom s overall strategy to transition towards a diverse and digital economy, the Central Bank of Bahrain (CBBThe Regulatory Sandbox provides a platform for startups to test and refine their ideas, leading to the creation of new solutions that can benefit the region.

This innovation will drive the growth of the cryptocurrency industry in the Middle East and beyond.

Practical Advice for Crypto Startups in Bahrain

For crypto startups considering setting up shop in Bahrain, here's some practical advice:

• Understand the regulatory landscape: Thoroughly research the CBB's regulations and guidelines for crypto-assets.
• Seek Sharia compliance: If targeting the Middle Eastern market, consider adhering to Sharia principles.
• Engage with the CBB: Actively participate in consultations and seek guidance from the CBB.
• Network with industry stakeholders: Build relationships with other crypto businesses, investors, and advisors.
• Focus on compliance: Prioritize compliance with all applicable regulations and standards.

Key Takeaways

In summary, Rain's graduation from the Central Bank of Bahrain's Regulatory Sandbox is a significant achievement that highlights Bahrain's commitment to fostering fintech innovation and regulating the cryptocurrency industry.This milestone has several important implications:

• Bahrain is emerging as a leading hub for crypto regulation in the Middle East.
• Rain's success provides a clear pathway for other crypto businesses to obtain regulatory approval.
• The CBB's Regulatory Sandbox is an effective tool for fostering innovation and ensuring compliance.
• The future of cryptocurrency in the Middle East looks bright, with increased regulatory clarity, investment, and innovation.

As Bahrain continues to develop its fintech ecosystem, it is poised to become a major player in the global cryptocurrency market.