The Milli Majlis (National Assembly) of the Republic of Azerbaijan adopted the draft law "On Crowdfunding" in its third reading during today's plenary session.
According to the Operative Information Center-OMM, the new legislation establishes the legal, organizational, and economic foundations for equity and debt-based crowdfunding. It defines the requirements for crowdfunding platform operators and outlines the framework for state regulation and oversight of these activities.
The primary objective of the law is to provide economic entities—particularly startups, as well as micro, small, and medium-sized enterprises (SMEs)—with efficient and sustainable access to alternative financing channels. By leveraging information systems and capital market opportunities, the law aims to boost business activity while ensuring the protection of investors participating in these funding mechanisms.
Crowdfunding activities will be regulated not only by this new law but also by the Constitution of Azerbaijan, international treaties to which the country is a party, the Civil Code, and legislation regarding anti-money laundering and counter-terrorism financing. Furthermore, the Central Bank of Azerbaijan is authorized to adopt normative acts to ensure compliance with these standards.
The law explicitly excludes legal entities created by the state to implement investment policies and their subsidiaries from its scope. Additionally, crowdfunding activities within the Alat Free Economic Zone will continue to be governed by the specific regulations outlined in the "Law on the Alat Free Economic Zone."
Violations of the law's provisions will result in liability as prescribed by legislation. The law is set to enter into force six months after the date of its official publication.
