Azerbaijani parliament reviews draft law on crowdfunding

Azerbaijani parliament reviews draft law on crowdfunding

The Milli Majlis (Parliament) of Azerbaijan discussed the draft law on crowdfunding at today meeting of the Economic Policy, Industries and Enterprising Committee.

The document regulates the legal, organizational, and economic foundations of equity- and debt-based crowdfunding, sets requirements for crowdfunding platform operators, and defines state regulation and oversight of their activities.

The purpose of the law is to provide economic actors - especially startups, micro, small, and medium enterprises - with convenient access to operational and sustainable alternative financing channels through information resources and capital market opportunities, while ensuring the protection of investors rights.

Crowdfunding activities will be regulated not only by this law but also by the Constitution, international treaties joined by Azerbaijan, the Civil Code, relevant laws on anti-money laundering and counter-terrorism financing, targeted financial sanctions, other normative acts, and regulations adopted by the Central Bank of Azerbaijan.

The law does not apply to legal entities created by the state or institutions established by them to implement state investment policy.

Relations concerning crowdfunding in the Alat Free Economic Zone will be regulated in accordance with the law "On the Alat Free Economic Zone."

Persons violating the requirements of the law will bear responsibility as stipulated. The law will enter into force six months after publication.