The draft law "On Crowdfunding" was adopted in the first reading at the plenary session of the Milli Majlis held today.
The new law regulates the legal, organizational and economic foundations of the implementation of equity and debt-based crowdfunding, the requirements for the activities of crowdfunding platform operators, as well as issues of state regulation and control over their activities.
The purpose of the law is to provide economic entities, especially startups, micro, small and medium-sized entrepreneurs, with convenient access to operational and sustainable alternative financing channels by using information resources and systems, as well as the opportunities of the capital market, in order to increase their business activity, and to ensure the protection of the rights of investors participating in financing.
Crowdfunding activities are regulated by this law, as well as the Constitution of the country, international treaties to which our country is a party, the Civil Code, this Law, the laws "On combating the legalization of property acquired through criminal means and the financing of terrorism", "On targeted financial sanctions", other normative legal acts, as well as normative acts of the Central Bank of Azerbaijan adopted in accordance with them.
The law does not apply to legal entities established by the state for the purpose of implementing the state's investment policy and the organizations established by them.
Relations related to crowdfunding in the Alat free economic zone are regulated in accordance with the requirements of the law "On the Alat Free Economic Zone".
Persons who violate the requirements of the law are liable in cases stipulated by the law.
The law enters into force 6 months after the date of its publication.
