Introduction

Attitude of the country towards crowdfunding, crowdinvesting and crowdlending platforms

• No dedicated crowdfunding law exists in Bolivia.
• These activities fall under general financial and securities laws, including:
• Ley del Mercado de Valores (Ley N° 1834)
• Ley de Servicios Financieros (Ley N° 393)
• General banking and commercial regulations.
• Many crowdfunding models face legal uncertainty and may need to operate as licensed financial intermediaries or partner with authorized entities.

• The Autoridad de Supervisión del Sistema Financiero (ASFI) prioritizes:
• Investor protection
• AML/CFT compliance
• Clear disclosure of risks.
• Platforms offering investment or lending services usually require registration or partnerships with regulated institutions.

• Decreto Supremo N° 5384 (2025 introduces a FinTech sandbox for testing innovative models, including crowdfunding and crowdlending.
• Platforms can apply for temporary, supervised testing while ASFI develops future regulations.

Market Development

• Bolivia’s crowdfunding market is still nascent, with few active platforms and low investor participation.
• Most current efforts are informal or reward-based (donation or product rewards), with limited oversight.
• Equity crowdfunding and P2P lending remain underdeveloped due to regulatory gaps and market hesitancy.

Legal affairs

Obligations and requirements to provide crowdfunding, crowdinvesting and crowdlending platforms described above

• ASFI authorization is mandatory for platforms offering investments (crowdinvesting) or loan intermediation (crowdlending).
• No specific crowdfunding law exists yet — current rules derive from:
• Ley del Mercado de Valores (Ley N° 1834) – securities offerings.
• Ley de Servicios Financieros (Ley N° 393) – financial intermediation.
• Banking and commercial laws for loans or deposits.
• Operating without authorization can be deemed illegal financial intermediation.

• Platforms must be incorporated in Bolivia (SA or SRL) with a defined fintech/financial purpose.
• Minimum capital is required, as determined by ASFI.
• Teams must include qualified experts in compliance, risk management, and IT security.

• Full AML/CFT compliance under Laws N° 004 and 262, including:
• KYC (customer identification)
• Monitoring and reporting suspicious transactions to the UIF.
• Platforms must have internal controls to protect investors’ funds and data.
• Clear disclosures of risks, fees, and user rights are mandatory.

• Platforms must provide:
• Accurate information on projects or borrowers.
• Risk and creditworthiness assessments.
• Transparent fees and conflict-of-interest disclosures.
• Suitability checks for investors based on risk levels are required.

• Platforms must ensure cybersecurity, encryption, and data protection.
• Maintain audit trails and transaction records for oversight.

• Regular reports to ASFI and UIF covering:
• Financial status, transaction volumes, compliance, and AML activities.
• Regulatory audits and inspections are mandatory.

• FinTechs can apply to the Decreto 5384 sandbox to pilot crowdfunding/crowdlending services.
• Must submit detailed proposals, risk mitigation plans, and progress reports during testing.

• Running platforms without ASFI authorization is illegal and can lead to sanctions or shutdowns.
• Offering unregistered securities or unauthorized deposit-taking is prohibited.

Additional comments regarding the legal situation for crowdfunding, crowdinvesting and crowdlending platforms or what FinTech’s must be aware of in this business area

• Bolivia lacks a specific, clear law for crowdfunding and related fintech models.
• Fintechs must operate under existing financial and securities laws, causing legal uncertainty and compliance challenges.
• Decreto Supremo N° 5384 (2025) creates a sandbox for fintechs to test models and work with regulators, but full licensing rules are still being developed.

• Regulators focus on investor protection, requiring strict adherence to:
• AML/CFT rules
• Clear risk disclosures
• Transparency on fees and terms
• Unauthorized platforms risk being labeled illegal, with potential sanctions or criminal charges.

• Fintechs succeed by:
• Partnering with licensed banks or brokers
• Starting in the sandbox to build trust and compliance
• Engaging regulators early to seek formal approval

Economic conditions

Market size for crowdfunding, crowdinvesting and crowdlending platforms and biggest companies in this business area

• Early stage but growing, mainly for social causes, community, and creative projects.
• Most campaigns are informal or run on global platforms without local adaptation.
• Total funds raised annually are estimated below US$2 million, mostly donation/reward-based.

• Very limited due to regulatory complexity and lack of local platforms.
• Most equity investments come from traditional investors or angel networks.
• Market size is under US$500,000 annually, with no major active platforms.
• Regulatory sandbox (Decreto Supremo 5384, 2025) is starting to allow pilot projects.

• Slightly more developed but still small.
• Some fintech startups target SMEs and microenterprises underserved by banks.
• Estimated loan volume facilitated annually is around US$1–3 million.
• No dominant platforms; mostly early-stage fintechs testing or operating informally.

• Traditional banks and microfinance institutions dominate lending; crowdfunding impact remains minimal.
• Emerging fintech startups piloting crowdfunding and crowdlending under ASFI’s sandbox.
• Global platforms (Kickstarter, GoFundMe, Kiva) are used informally but lack local authorization.

• Early adoption phase with high growth potential as regulation and local platforms develop.
• Strong demand from SMEs and startups for alternative financing.
• Government fintech initiatives and sandbox programs are key drivers of future growth.

Additional comments regarding the economic situation for crowdfunding, crowdinvesting and crowdlending platforms or what FinTech’s must be aware of in this business area

• Bolivia’s economy grows steadily but faces challenges like currency volatility, inflation, and dependence on commodity exports, which affect investor confidence.
• Financial inclusion is limited; many individuals and small businesses lack access to formal financing.
• A large informal sector complicates KYC processes and regulatory compliance.

• Strong unmet need for SME financing and startup capital, often underserved by traditional banks.
• Crowdlending and crowdinvesting provide alternative funding for early-stage and informal businesses.
• Donation and reward-based crowdfunding mainly supports community, cultural, and social projects.

• No dedicated crowdfunding law; fintechs must navigate existing financial, securities, and commercial laws.
• AML/CFT and consumer protection compliance can be costly and complex for startups.
• The sandbox under Decreto Supremo 5384 offers a controlled space to innovate but requires close regulatory engagement.

• Rising internet and smartphone use enable access but trust in digital finance platforms is critical.
• Fintechs must focus on user education, clear disclosures, and strong security.

• Partnering with banks, microfinance institutions, or government programs boosts credibility and reach.
• Gradual entry and pilot projects via the sandbox reduce risks.