Saudi Central Bank (SAMA) updated rules for practicing debt crowdfunding activities.
The rules were earlier published on the Public Consultation Platform to seek public opinions before being updated.
The new rules of practicing debt crowdfunding aim to redefine beneficiaries, to include all commercial establishments registered in the Kingdom, which seek to raise finance through the debt crowdfunding platform, SAMA said in a statement.
They also aim to add the definition of aggregate accounts to ensure separation between participants’ funds in the financing process and the crowdfunding facility funds.
The new rules also define a ceiling for crowdfunding, based on capital, through amending Article 28.
The shift comes in line with SAMA’s efforts to boost the finance sector and keep abreast of recent developments in the finance industry.
The Saudi Central Bank also strives to support financial technology (fintech) that led to the emergence of several fintech actors.