EdgeProp registered as Malaysia's first property crowdfunding operator
Last update: 25/09/2019
KUALA LUMPUR, Sept 25 -- EdgeProp Sdn Bhd has been registered as the country’s first recognised market operator to establish and operate a property crowdfunding (PCF) platform by the Securities Commission Malaysia (SC).
In a statement today, the SC said this was following a revision of its Guidelines on Recognised Markets in May 2019.
EdgeProp was granted an approval in principle in September 2019.
PCF is a property crowdfunding scheme which acts as an alternative financing avenue for first-time homebuyers -- one of the initiatives announced under the 2019 Budget.
According to the SC, PCF offers the same potential as that of equity crowdfunding and peer-to-peer financing platforms in providing an alternative source of financing, but is specifically tailored for first-time homebuyers.
"At the same time, it will provide investors access to a new investment option," it said.
The regulator also cautioned that operating a PCF platform without authorisation from the SC is an offence, and those found guilty may be liable to a fine not exceeding RM10 million or imprisonment term not exceeding ten years or both.
-- BERNAMA