EQUITY CROWDFUNDING INDUSTRY REGULATIONS IN MALAYSIA AND INDONESIA

Equity crowdfunding (ECF), also known as crowd-investing or investment crowdfunding, is a way of boosting capital used by start-ups and early-stage companies. Fundamentally, ECF offers the company’s securities to potential investors in exchange for their investment. As result, each investor authorized share company proportionate financing. This paper discusses industry regulations Malaysia Indonesia terms its prospects challenges during COVID-19 pandemic through doctrinal research using conventional legal method. Critical analytical approaches were achieve objectives. The findings showed that has seen growth over 170% new accounts registered Malaysia, with 65% them being retail investors. There great demand from individual who are looking invest various products services made accessible them. Capital Markets Services Act 2007 plays an important role provide good governance business Malaysia. Further, Guidelines on Recognized (GRM 2020) (Item 1.01 GRM) section 15 (g) Securities Commission 1993 clarifies function regulate activities protect interests parties involved, especially In Indonesia, main regulator Financial Authority law Regulation Number 57/POJK.04/2020 concerning Crowdfunding. regulation aims extend scope which includes debt-based sukuk. both countries era because fintech, led services, vital force helps democratize investments will continue increase become more educated informed. law, comparatively, it different governance, process procedure, types investors, etc. applicable Indonesia.