New Crowdfunding Legislation Enters Into Force

The Turkish Parliament has recently passed new legislation intended to bring the beginnings of the long-awaited legislative framework for crowdfunding.

Blanket Law numbered 7061 which, amongst others, introduced several amendments to the Capital Markets Law came into force on 5 December 2017 (the "Amendments").

The Amendments cast crowdfunding as an alternative way to raise capital alongside formal offerings and grants the Capital Markets Board (the "CMB") authority to issue more detailed secondary legislation.

What is crowdfunding?

Crowdfunding is an alternative financing method typically used by start-ups and entrepreneurs to raise small amounts of capital from a large and diverse investor base by leveraging the wide reach of social media and other web-based platforms.