Tuesday, June 18, 2024
Editor's PickLBS Urun Dana secures Islamic securities crowdfunding license

LBS Urun Dana secures Islamic securities crowdfunding license

The Indonesian Islamic securities crowdfunding space has grown with LBS Urun securing a license from the Indonesian Financial Authority, or Otoritas Jasa Keuangan (OJK), allowing the Shariah fintech start-up to provide alternative financing for SMEs in the form of equity or Sukuk.

What differentiates a securities crowdfunding license from the equity crowdfunding one is that it grants the right for fintech start-ups to offer not just shares, but also Sukuk, obligations and other derivatives. OJK, which began regulating securities crowdfunding at the start of 2021, requires Islamic securities crowdfunding platforms to have a Shariah supervisory board, a custodian Islamic bank and an Islamic bank account.

LBS Urun Dana was founded by Ustadz Dr Erwandi Tarmizi, an expert in contemporary Fiqh Muamalat or Islamic views on human interactions.

Excluding LBS Urun Dana, the IFN Islamic Fintech Landscape has identified 16 crowdfunding platforms in Indonesia, accounting for nearly half of the world’s Islamic crowdfunding start-ups as at the 24th March 2022.


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