PeerBerry shareholders have reportedly set deadlines to introduce the crowdfunding platform
As noted in an update, the license to operate a crowdfunding business across the European Union has been provided by the Bank of Lithuania, which is considered to be one of the most progressive regulators globally. As mentioned in a blog post by PeerBerry, the list of licensed crowdfunding platform operators who are under the supervision of the Bank of Lithuania can be reviewed here.
As explained in the blog post, the holder of the crowdfunding license is the Lithuanian legal entity Crowdpear LLC, which “authorized capital currently is EUR 60 000 – higher than required by regulation.”
As mentioned in the announcement, shareholders of the investment marketplace PeerBerry and the crowdfunding platform Crowdpear “are the same.” The crowdfunding platform will “run its operations under the registered brand Crowdpear,” the update revealed.
Regulated platform Crowdpear will provide investors with options to invest in real estate and business projects. Crowdpear operations will be “supervised by the Bank of Lithuania.” Since 10 November 2021, crowdfunding regulation is “being applied directly across the EU.”
As noted in the update:
“Heading towards the long-term strategy to become one of the most successful crowdfunding platforms in Europe, Crowdpear management also closely works with the Lithuanian P2P Lending and Crowdfunding Association.”
Lithuania is one of the largest Fintech hubs in the world. In Lithuania, “the number of FinTech companies is growing by 20-30% a year.”
Since 10 November 2021, the crowdfunding regulation “lays down uniform rules across the EU for the provision of investment-based and lending-based crowdfunding services related to business financing.”
The update also explained that it “allows platforms to apply for an EU passport based on a single set of rules, which makes it easier for them to offer their services across the EU with a single authorization.”
The updated rules are “expected to increase the availability of this innovative form of finance, which will help companies seeking alternatives to bank financing.”
Investors on crowdfunding platforms, meanwhile, should be able to “benefit from an aligned and enhanced investor protection framework,” based on:
- clear rules on information disclosures for project owners and crowdfunding platforms,
- rules on governance and risk management for crowdfunding platforms,
- strong and harmonized supervisory powers for national authorities overseeing the functioning of crowdfunding platforms.
