The central bank said that the objective of introducing this regulation is to put in place a framework for licensing, regulating and monitoring loan-based Crowdfunding Platforms (CFPs).
Monday 30, September 2019 BY KUDAKWASHE MUZORIWA
The Central Bank of UAE (CBUAE) is seeking comments and feedback from experts on a loan-based Crowdfunding Platforms draft regulation before it is officially approved and issued, according to local newswire, WAM.
The framework and its requirements seek to safeguard the financial system from the risks posed by CFPs as well as protect the interests of consumers in the UAE. The framework also seeks the development of fintech business in the UAE in a prudent manner.
According to the regulation, CFPs are categorised according to their lending volume, cumulative loans facilitated in a calendar year at AED 5,000,000 (large) and cumulative loans facilitated in a calendar year are below AED 5,000,000 (small).