Regulatory Alerts2024-06-04
Capital Markets and Securities (Investment-Based Crowdfunding) Guidelines
The Capital Markets and Securities Authority of Tanzania has issued the 2023 Investment-Based Crowdfunding Guidelines to establish a comprehensive licensing and operational framework for crowdfunding platforms. The regulations mandate that licensed operators conduct rigorous due diligence on issuers and investors, maintain dedicated trust accounts for fund safeguarding, and enforce strict disclosure, conflict management, and reporting obligations. By restricting certain entity types, limiting concurrent platform hosting, and permitting micro-funds for sophisticated investors, the framework expands alternative financing while ensuring robust consumer protection and market integrity.
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