Crowdfunding Licensing In Cyprus

Introduction

In recent developments, the Cyprus Securities and Exchange Commission (CySEC) has introduced a significant policy statement, PS-01-2023, which outlines the implementation of Regulation (EU) 2020/1503 governing European Crowdfunding Service Providers for businesses. Additionally, it includes Directive DI73-2009-02 addressing Crowdfunding Service Providers.

Regulatory Framework

The new regulatory framework's primary objectives are to establish uniform rules, enhance market accessibility, strengthen investor protection, and grant European Crowdfunding Service Providers an EU passport. This passport enables them to offer services across the European Union with a single authorization. The framework encompasses various aspects, including information disclosures, transparency, marketing communications, governance, risk management, and supervisory powers for national authorities overseeing crowdfunding platforms.