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Cyprus introduces new legislation on crowdfunding service providers for business

03 Jan 2025
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Cyprus has recently introduced the Provision of Crowdfunding Services for Businesses Law of 2024 (the Crowdfunding Services Law), to align with EU Regulation (EU) 2020/1503 on crowdfunding service providers for business.

The Crowdfunding Services Law governs the licensing of crowdfunding platforms, enhances investor protections, and sets out disclosure standards for service providers. Key aspects include penalties for misleading information and the supervisory role of the Cyprus Securities and Exchange Commission (CySEC) in ensuring compliance. The Crowdfunding Services Law aims to facilitate business funding while safeguarding stakeholders.

This new legislation introduces clear conditions for platforms to operate, such as mandatory risk warnings for investors and transparency on fees and project vetting processes. CySEC’s oversight ensures that crowdfunding activities remain secure, compliant, and promote sustainable investment opportunities.

For more details, visit CySEC’s official publication here and the EU Regulation 202/1503 can be found here.