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.
Rain also announced that it has passed a Shariah compliance certification. The Shariah compliance certification was completed by Shariyah Review Bureau (SRB) which is licensed by the Central Bank of Bahrain.
SRB has reviewed Rain's brokerage service and has determined that the sale, purchase and custodian activities of Rain comply with Shariah principles.
Rain said it aims to deliver more value with a Shariah compliant cryptocurrency exchange. The Shariah certification covers a suite of three cryptocurrencies - bitcoin, ethereum, and litecoin.
Rain added that it expects to enable top-tier family offices, sophisticated investors and Islamic institutional investors to buy, sell and store cryptocurrency in a Shariah compliant way.
Rain was founded in 2016 by four entrepreneurs Yehia Badawy, Abdullah Almoaiqel, AJ Nelson and Joseph Dallago who shared a joint vision to create a fully Shariah compliant exchange to provide trust for local cryptocurrency traders.
Almoaiqel said: "This is a major milestone in the cryptocurrency and Islamic markets. This is the implementation of Rain's mission to provide the Middle East with a cryptocurrency exchange that meets the highest standards in terms of regulation, accessibility, security and trust.
"We are excited to open the Islamic markets to cryptocurrency with a Shariah compliant exchange and a suite of cryptocurrency investment opportunities. We could not be more excited to have graduated the sandbox and are very close to our public launch now."