The Capital Market Authority (CMA) Grants a Financial Technology experimental permit (FinTech ExPermit) to Mekyal Financial Company to create an Equity Crowdfunding Platform
Thursday, July 23, 2020 at 4:34 PM
Thu Jul 23, 2020 16:34
Based upon the Capital Market Law issued by Royal Decree No. (M/30) dated 2/6/1424H, and reference to the Financial Technology Experimental Permit Instructions issued by CMA in 10/01/2018, which aims to provide a regulatory framework that is conducive for the innovation of Financial Technology (FinTech) in the capital market within the Kingdom. In relation to this, the CMA Board of Commissioners issued its resolution to grant Mekyal Financial Company a Financial Technology Experimental Permit (ExPermit) to create an equity crowdfunding platform. Based on this permit, Mekyal Financial Company will be able to experiment the crowdfunding FinTech which allows investors to participate in funding small and medium size enterprises in exchange for shares in such enterprises. The service is provided through an electronic platform owned and monitored by the company. CMA would like to highlight that this permit coincides with the launch of the third batch for ExPermit of FinTech innovations which was announced in 25/11/2019, related to securities businesses that fall under the CMA's supervision. Later this year, the CMA will open the door for the fourth batch of applications for FinTech ExPermits.