Further, the new regulations compel the platform operators 'to ensure [the] suitability of the products' that are being offered to retail clients. crowdfunding regulations
Bahrain Central Bank Issues New Regulations Governing Operations of Crowdfunding Platforms
The new regulations, which are covered under the Crowdfunding Platform Operators Module , also address the “segregation of client money from platform operators and other measures to ensure safe operation of the activity.” Further, the new regulations compel the platform operators “to ensure [the] suitability of the products” that are being offered to retail clients.
According to Al Sayed, the new regulations are easy to understand and come with minimum safeguards to ensure the crowdfunding platforms do not pose risks to the financial sector.Another CBB executive, Yasmeen Al-Sharaf, the director of Fintech and the innovation unit, is quoted suggesting that crowdfunding avails an alternative funding source for startups.