Regulatory Alerts2013-06-11
Setting the Framework and Rules for Crowdfunding Companies in Lebanon
The Capital Markets Authority and Banque du Liban have issued Decision Number 3 to establish the legal framework, licensing procedures, and operational rules for crowdfunding institutions in Lebanon. The regulation mandates that both domestic joint-stock companies and foreign branches meet a one billion Lebanese Pound capital threshold and undergo a two-stage approval process to operate electronic crowdfunding platforms. It further defines minimum investment thresholds, escrow account requirements, technical standards for data security, and strict prohibitions on advisory services and deposit-taking to protect public investors.
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