Egypt’s FRA receives proposals for controls on electronic crowdfunding platforms

Egypt’s FRA receives proposals for controls on electronic crowdfunding platforms

A committee has been formed to prepare a law regulating and developing the use of financial technology (fintech) in non-banking financial activities, according to Chairperson of the Financial Regulatory Authority (FRA) Mohamed Omran. The FRA has received a number of proposals regarding the rules and controls for establishing, operating, and managing electronic platforms for crowdfunding, which grants financing directly to a project or company in the form of lending.The proposals also cover methods of financing that occur indirectly, where the project will take the form of a company with financing made available through the issuance of securities, such as shares and bonds.The committee is set to review the proposals before the presentation of a selected number to the FRA's Board of Directors. The move will bring into focus the authority's need