PETALING JAYA: The Securities Commission Malaysia (SC) has registered EdgeProp Sdn Bhd as the first recognised market operator to establish and operate a property crowdfunding (PCF) platform in Malaysia.
This comes after the revision of the SC’sGuidelines on Recognised Markets in May 2019.
The regulator said in a statement that EdgeProp was granted an approval in principle in September 2019.
PCF is an initiative announced in Budget 2019 to provide an alternative financing avenue for first-time homebuyers through a property crowdfunding scheme.
The SC said property crowdfunding offers the same potential as that of equity crowdfunding (ECF) and peer-to-peer (P2P) 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.”
However, it cautioned that it is an offence under the securities laws to operate a PCF platform without authorisation from the SC.
Any persons found to be in breach may be liable to a fine not exceeding RM10 million or imprisonment term not exceeding ten years or both.
