Three years after the Iran Fara Bourse (IFB) initiated measures to facilitate crowdfunding through its platform, it has now welcomed its first blockchain-powered crowdfunding start-up. Several other crowdfunding platforms are also expected to be licensed.
The new start-up is Kuknos which allows finance seekers to raise up to IRR100 billion (US$2.37 million) in a Shariah compliant manner. The licensing of Kuknos illustrates IFB’s fintech strategy which focuses strongly on crowdfunding and blockchain. An ardent proponent of blockchain technology, IFB is preparing to launch blockchain Sukuk and has nurtured a crowdfunding community over the last few years.
IFB began building the foundation for crowdfunding in 2018. It signed a multilateral MoU with several ministries to facilitate crowdfunding activities. The bourse, one of four local exchanges, has so far licensed four other crowdfunding platforms: KarenCrowd, Dongi, HamAfarin and ParsFunding. It confirmed another six are completing the application process for a principal consent.
These developments are part of the IFB’s wider strategy to optimize efficiency and transparency as well as diversify financing sources for the Iranian market, which practices a fully Islamic model. Outlawing conventional structures, Iran holds the largest concentration of Islamic financial assets globally.