Saudi central bank announces new rules for debt crowdfunding

The Saudi Central Bank announced the update of the rules for the practice of crowdfunding with debt afterwards The deadline for public contribution on a draft has expired The update takes place via the “Estsalalah” platform of the National Competitiveness Center.

According to a press release published today, Tuesday, on the site web of the bank, the updating of these rules stems from the continuous efforts of the Central Bank to develop the financial sector, to keep pace with the developments in the financial sector in general and to continue its efforts to support and enable financial technology enterprises, which has led to the emergence of many technology companies.Financing, as well as the remarkable development of technology in the financing business.

And the Central Bank indicated that this update included the redefinition of the beneficiary; Include all businesses registered in the Kingdom of Saudi Arabia, seeking to obtain funding through the debt crowdfunding platform, and add an account definition in pool to ensure the complete separation between the funds of the participants in the financing process and the funds of the crowdfunding mechanism with debt, as well as determining the ceiling of the funds through the financing platform Collective debt for debt crowdfunding companies, based on the criterion of capital by modifying article (28).

The updated rules included a complete separation of funds from participants in the funding process and funds from the crowdfunding facility.

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