The Central Bank shall regulate and license Loan-based Crowdfunding Activities (LCAs) in the United Arab Emirates (UAE). By issuing this Regulation, the Central Bank aims to set out the minimum standards required of LCAs. Companies providing LCAs are encouraged to strive to meet higher standards than the minimum requirements set out in this Regulation.

Objective

The objective of introducing this Regulation is to put in place a framework for licensing, regulating and monitoring LCAs and to set out the standards that the Central Bank expects in this regard. The purpose of both the framework and the requirements is to:

• i- Safeguard the financial system from the risks posed by LCAs; and

• ii- Safeguard the interests of consumers in the UAE.

Application

This Regulation is issued pursuant to the powers vested in the Central Bank by the Decretal Federal Law No. 14/2018 regarding the Central Bank and Organization of Financial Institutions and Activities.

Scope

This Regulation shall apply to crowdfunding companies, wherever their platforms hosted, engaging in LCAs in the UAE, except in the Financial Free Zones.