In a move to bolster the fintech sector and enhance financial transparency, the Qatar Central Bank (QCB) has introduced regulations for loan-based crowdfunding services on Wednesday. The innovative mechanism is designed to serve as an alternative financing solution, particularly for small and medium-sized enterprises (SMEs) that encounter difficulties with traditional loan systems.
The new regulations are part of QCB's broader strategy to strengthen the foundations and infrastructure of fintech in the country. The bank's objective is to license and oversee companies operating in the crowdfunding space, thereby bridging the gap between borrowers and investors. This initiative promises to provide short-term financing opportunities for SMEs and diversified investment opportunities for potential investors.
As part of its strategy, QCB aims to triple the number of licensed fintechs through an expanded talent center of excellence and increased fintech integration in daily life. By 2030, the bank plans to have established regulations for a range of fintech services, including crowdfunding, insurtech, buy now pay later (BNPL), digital banking, wealthtech, electronic Know Your Customer (e-KYC), Distributed Ledger Technology (DLT), open banking standards, artificial intelligence (AI), and cloud computing.
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