Qatar Central Bank (QCB) issued Monday instructions for lending-based crowdfunding, with the aim of licensing and regulating lending-based crowdfunding service providers in the country.

This issuance comes in line with the financial sector strategy and the financial technology strategy, in addition to the constant endeavor to regulate and develop the financial sector in the country.

QCB confirms that it is mandatory for all companies wishing to work in this field to apply for the QCB license.

Lending-based crowdfunding platforms are considered innovative financial platforms that enable borrowers in need of financing to communicate with various investors and obtain short-term financing and help diversify investments. Borrowers, such as small and medium-sized companies who find it difficult to access traditional bank loans, can obtain the financing necessary for growth and overcome their business challenges.

QCB is keen to provide effective and valuable initiatives that help create a suitable environmen
t for the growth of the financial technology sector in the country, as these platforms support the development of the financial sector and enhance the transparency, efficiency and ease of the borrowing process.

The instructions are available at the QCB website.

Source: Qatar News Agency