Azerbaijani parliament approves crowdfunding bill in first reading

Azerbaijan's Milli Majlis (Parliament) has approved in the first reading a draft law on crowdfunding that establishes the legal, organisational, and economic framework for equity and debt financing through specialised platforms.

The bill also sets out requirements for the operation of crowdfunding platform providers, as well as mechanisms for state regulation and oversight of the sector, Caliber.Az reports, citing local media.

The legislation is intended to create accessible, efficient, and sustainable alternative financing channels for economic entities—particularly startups and micro, small, and medium-sized enterprises—by leveraging information resources, digital systems, and capital market opportunities.

The draft law also aims to protect the rights of investors participating in project financing through crowdfunding platforms.

In addition to the new law, crowdfunding activities will be governed by Azerbaijan's Constitution, international treaties to which the country is a party, the Civil Code, the laws "On Combating the Legalisation of Criminally Obtained Property and the Financing of Terrorism" and "On Targeted Financial Sanctions," other applicable legal and regulatory acts, and relevant regulations issued by the Central Bank of Azerbaijan.

The law will not apply to legal entities established by the state to implement investment policy or to entities founded by such organisations.

The legislation is set to enter into force six months after its publication.

By Bakhtiyar Abbasov