The Committee on Economic Policy, Industry, and Entrepreneurship of the Milli Majlis (National Assembly) has reviewed the draft law "On Crowdfunding" during its latest session. This legislative initiative marks a significant step toward formalizing alternative financing mechanisms within the country.
According to the Operative Information Center-OMM, the draft law establishes the legal, organizational, and economic framework for equity and debt-based crowdfunding. It outlines specific requirements for crowdfunding platform operators and defines the scope of state regulation and oversight necessary to ensure market integrity.
The primary objective of this legislation is to provide startups, as well as micro, small, and medium-sized enterprises (SMEs), with efficient and sustainable access to alternative financing channels. By leveraging capital market opportunities and digital information systems, the law seeks to boost business activity while simultaneously strengthening protections for investors. The regulatory framework will operate in conjunction with existing legislation, including the Civil Code and laws combating money laundering and the financing of terrorism, under the supervision of the Central Bank of Azerbaijan. The law is set to enter into force six months after its official publication, excluding entities operating within the Alat Free Economic Zone, which remain subject to separate regulations.
