The Persian Gulf is a crucial region for the cryptocurrency industry. Achieving compliance with Sharia law has proven to be somewhat challenging. Bahrain-based cryptocurrency exchange Rain is now blazing the trail. Their current goal is to expand their presence in the GCC.
Rain Eyes a Major Expansion
The countries making up the Persian Gulf are brought together under the GCC banner. The Gulf Cooperation Council spans all Arab states of the Persian Gulf except for Iraq. Bahrain is one of the regions included, as are Kuwait, Saudi Arabia, and the UAE, among others. It appears this cooperative entity is now exploring opportunities in the cryptocurrency world.
Bahrain-based cryptocurrency exchange Rain wants to expand. More specifically, they eye the entire GCC region as their primary objective. In doing so, the exchange will bring cryptocurrencies to all of the six other countries who are part of the GCC. To offer this service, the company will need to obtain a full operational license.
That process will take up valuable time. Rain spokespeople mention a target date of 2019, without going into further specifics. If successful, the firm will become the first regulated digital currency exchange in the GCC. It would also put an end to investors’ concerns regarding the lack of regulation.
Bitcoin and the GCC to Date
Over the years, the GCC and Bitcoin have been mentioned in the same breath. Earlier this year, Dubai-based exchange BitOasis made some headlines. Their goal was to collaborate with the GCC to take cryptocurrency mainstream. A legal framework for the Arab states has been in development ever since. Rain’s involvement may help move things along in a positive manner.
Back in 2014, the first link between the GCC and Bitcoin became apparent. At that time, a Kuwait finance firm proposed the idea of trading oil for Bitcoin. This is part of an ongoing “war” on the petrodollar. The proposal was never given a second thought, yet it raises interesting questions. Political tension between some OPEC countries and the US can trigger a shift away from the Dollar over time.
Any developments in this regard will hinge on future regulatory measures. If Rain can expand successfully and obtain its license, an interesting scenario is created. It is a bit unclear if the Gulf Cooperation Council will see things in a similar light. Regulating Bitcoin remains a very complex and difficult manner first and foremost.
What do you think about Rain’s intended expansion? Let us know in the comments below.
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