Crowdfunding in Cyprus
By Chrysovalantis Papantoniou, Lawyer at S.Dionysiou & Partners LLC Crowdfunding is one of the most innovative financial schemes, which provides the opportunity of increase in capital by expanding the pool of investors beyond the traditional circle of owners. Most often used by startup companies or growing businesses, whose owners aim at obtaining alternative funds through online platforms. The abovementioned services are regulated in Cyprus by the Cyprus Securities and Exchange Commission (“CySec”) under the Crowdfunding Directive D187-10 (“The Directive”). The main aim of the Directive is to heighten the guidance and protection already provided to investors by the Investment Services and Activities and Regulated Markets Law.It is important to point out that that the current legislation safeguards the interest of crowdfunding investors only through the issuance of transferrable securities and it excludes other forms of crowdfunding such as loans, rewards, or donations. As per