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.