Azerbaijan has adopted a law on crowdfunding

The Parliament of Azerbaijan has passed the draft law "On Crowdfunding" in its first reading. The document defines the legal, organizational, and economic foundations for raising funds through crowdfunding platforms, as well as establishing requirements for their operations and state regulation.

The new law aims to expand access for startups, micro-, small, and medium-sized enterprises to alternative sources of financing. It is expected to promote the development of entrepreneurship while strengthening investor protection.

According to the document, the activities of crowdfunding platforms will be regulated by the new law, the Civil Code, legislation on combating money laundering and terrorist financing, as well as international treaties of Azerbaijan. The Central Bank of the country will have the authority to develop additional regulatory acts.

The law does not apply to state legal entities created to implement investment policy, nor to projects in the Alyat free economic zone, which operates under separate legislation. The law will enter into force six months after its official publication.

Source: meclis.gov.az