CMB Shakes Crowdfunding

Recent Development

The Capital Markets Board ("CMB") previously issued the Communiqué on Share-Based Crowdfunding No. III-35/A.1. ("Share-Based Crowdfunding Communiqué") as reviewed in our  Client Alert dated October 14, 2019 to regulate share-based crowdfunding activities. The CMB now shared the Draft Communiqué on Crowdfunding No. III.-35/A.2. ("Draft Communiqué"), which regulates both share-based and debt-based crowdfunding and intends to abolish the Share-Based Crowdfunding Communiqué, to public opinion.

What Does the Communiqué Say? 

• Crowdfunding Platforms:  The crowdfunding activities will be conducted via crowdfunding platforms to be licensed by the CMB. These platforms will need to meet certain criteria:
  • Have paid-in capital (ödenmiş sermaye) of at least TRY 1,000,000 and maintain this amount of paid-in capital and shareholders' equity (özsermaye) (this condition will be applied as TRY 500,000 for the first two years following the licensing of