SAMA seeks public review on updated rules for debt crowdfunding activities

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The Saudi Central Bank (SAMA) released for public review the updated rules for debt crowdfunding activities.

In a statement today, Oct. 28, SAMA asked the public, specialists and interested individuals to provide their views and observations on the draft rules within 15 days.

The draft is available on the Public Consultation Platform affiliated to the National Competitiveness Center, the statement said.

The rules are a continuation of SAMA's efforts to develop the financial sector and to keep abreast with developments of technology within the financing industry.

In addition, the central bank seeks to support and enable financial technology, which has led to the emergence of a number of fintech companies, and to the development of technology within financing activity.

The updated rules aim to redefine the beneficiary to include all commercial establishments registered in the Kingdom, which seek to obtain financing through the debt crowdfunding platform.

Moreover, the updates intends to add a definition of aggregate accounts to ensure complete separation between the funds of the participants in the financing process and the funds of the crowdfunding facility.

It also determines the ceiling of crowdfunding allowed, based on the capital criterion by amending Article No. 28.

Public views will be received within 15 days, SAMA said, noting that that all views and observations will be under consideration for adopting the final version of these rules.