At the February 8, 2022 meeting of the Board, the Central Bank approved a package of by-laws regulating investment-based crowdfunding services (crowdfunding through the sale of securities).

Under these regulations, investment services providers licensed by the Central Bank will be able to offer services of a crowdfunding platform operator to the public.   

Entrepreneurs, including start-ups and SMEs, will be able to attract up to AMD 2.5 billion financing annually from investors via crowdfunding platforms through the sale of securities in a simplified manner, without extensive transparency requirements (e.g․ prospectus and other disclosures).

New investment opportunities will be created for investors through crowdfunding platforms (online, 24/7, fast, small-scale investments, etc.). Anyone can be an investor through crowdfunding platforms.

Investments through crowdfunding platforms are generally aimed at financing new projects with the expectation of rapid and high profitability. In this regard, investors should, to the extent possible, consider the risks related to the loss of invested money or liquidity, as well as thoroughly review all available investment information in advance.

The CB stressed that unlike other public offering of securities, documents (information) published on crowdfunding platforms are not subject to the registration by the Central Bank, but are subject to the assessment (due diligence) process by the relevant crowdfunding operator.

“The Central Bank is not responsible for the correctness and clarity of the documents (information) published on the crowdfunding platforms, as well as for the safety and return of investments made on these platforms,” the CB said in a statement.