Regulatory Alerts2017-05-16
Shari'ah-Compliant Financing-Based Crowdfunding Regulations for Bahrain
The Capital Markets Authority of Bahrain has issued regulations establishing licensing and operational standards for Shari’ah-compliant Financing-Based Crowdfunding platforms. These rules require licensed P2B operators to arrange Shariah-approved deals, maintain independent Shari’ah scholar oversight, and enforce strict investment thresholds limiting fundraisers to BD 50,000 annually and investors to 10% of their net assets. The framework further mandates minimum capital reserves, robust consumer protection measures, and comprehensive anti-money laundering procedures to ensure platform stability and investor confidence.
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