Qatar Central Bank issues the Loan-Based Crowdfunding Regulation

Thursday 12 October 2023 11:30 CET | News

Qatar Central Bank has issued instructions for the Loan-Based Crowdfunding Regulation, for the purpose of licencing and regulating activities and services in Qatar.

Qatar Central Bank announces that all companies wishing to work in the financial field must apply to obtain the necessary licence from QCB.

Loan-based crowdfunding platforms are considered important financial platforms, fostering a direct connection between individuals seeking funds and a diverse pool of investors. These platforms offer an opportunity to borrowers, such as small and medium-sized enterprises (SMEs), who find it difficult to access traditional bank loans, as they seek the essential capital to fuel their business growth and overcome the obstacles associated with the expansion of their projects. For investors, loan-based crowdfunding platforms represent a valuable opportunity to diversify their investment portfolio and actively support the growth of SMEs.

Qatar Central Bank has issued instructions for the Loan-Based Crowdfunding Regulation, for the purpose of licensing and regulating activities and services in Qatar.

According to the press release, Qatar Central Bank has stated that is committed to providing effective and valuable initiatives that help create an environment conducive to the growth of the financial technology sector in the country. This is due to the reason that these platforms support the development of the financial sector and enhance the transparency, efficiency, and ease of the borrowing process.

Qatar Central Bank also stated that all the instructions are available via its website.

Other recent developments from Qatar Central Bank

In August 2023, the Qatar Central Bank advised companies that intend to operate the Buy Now, Pay Later (BNPL) system to submit applications to receive the licence from the bank. In a statement, QCB outlined that it would receive the applications for licences in September 2023. The announcement comes to standardise the work of BNPL's service providers in Qatar, in conformity with the financial sector strategy and QCB's constant endeavour to regularise and upgrade the financial sector in the country.

In September 2022, the Central Bank stated that the licence represented an initial step to include all companies providing digital payment services under the supervision of the Qatar Central Bank to contribute to the development of the financial technology sector and improve financial inclusion.

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Keywords:	crowdfunding, lending, banking, financial services, regulation
Categories:	Banking & Fintech
Companies:	Qatar Central Bank
Countries:	Qatar

This article is part of category

Banking & Fintech

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