CMA grants FinTech permit to Meykal Financial for crowdfunding platform

The Board of Commissioners at the Capital Market Authority (CMA) granted Mekyal Financial Company with a Financial Technology Experimental Permit (ExPermit) to create an equity crowdfunding platform.

The decision falls in line with the Capital Market Law and the ExPermit instructions issued by the CMA, aiming to provide a regulatory framework that is conducive for the innovation of Financial Technology (FinTech) in the capital market within the Kingdom.

Based on the permit, Mekyal will be able to experiment the crowdfunding FinTech, allowing investors to participate in funding small and medium enterprises (SMEs) in exchange for shares in such firms.

The service will be provided through an electronic platform owned and monitored by the company.

The permit issuance coincides with the launch of the third batch for ExPermit of FinTech innovations, announced on Nov. 25, 2019, related to securities businesses that fall under the CMA's supervision.

Later this year, the CMA will open the door for the fourth batch of applications for FinTech ExPermits.