Crowdfunding / crowdinvesting / crowdlending
FinTechs belonging to this category operate crowdfunding, crowdinvesting and crowdlending platforms on which money is raised to invest in various projects, mainly start-up companies and real estate projects.
Crowdfunding is not a defined financial service, but generally used to describe donation-based crowdfunding (the investor donates the money to the project), reward-based crowdfunding (the investor receives an often symbolic consideration for his investment), equity-based crowdfunding (crowdinvesting: the investor participates in the profits of the financed project or acquires shares or debt instruments) or lending-based crowdfunding (crowdlending: the investor is reimbursed at the end of the project with or without interest).
Attitude of the country towards crowdfunding, crowdinvesting and crowdlending platforms
Crowdfunding is still not regulated under the Serbian law. The NBS announced on numerous occasions that it will adopt a separate law regulating group financing of the projects (crowdfunding), however the timeline for adoption of such law is unknown.
In the meantime, the Law on Digital Assets (“LDA”) regulates one aspect of group financing through the possibility of issuing investment (digital) tokens, based on which innovative companies focused on online business will be able to raise funds for their business and projects.
At the moment, there are two local platforms - a crowd-investing platform (Ventu) and a donation-based platform (donacije.rs) for non-profit organisations.
Obligations and requirements to provide crowdfunding, crowdinvesting and crowdlending platforms described above
Currently, crowdfunding is not regulated and provision of services by crowdfunding platforms is viewed by the regulators from the point of view of requirements needed for provision of classical lending services. However, it is announced that the NBS will aim to comprehensively regulate the conditions under which group financing will be possible, including who will be able to perform mediation activities between investors and fundraisers. In doing so, it is announced that the NBS will pay special attention to the legal and financial protection of beneficiaries of this type of financing, especially from the aspect of the purpose for which funds are collected, the manner of loan repayment, commissions and other conditions. Also, special attention will be paid to enabling cross-border crowdfunding and payment transactions to be carried out on that basis, bearing in mind the systemic solutions from the regulations governing foreign exchange operations as well as the prevention of money laundering and terrorist financing. The timeline for adoption of such law is unknown.
Additional comments regarding the legal situation for crowdfunding, crowdinvesting and crowdlending platforms or what FinTech’s must be aware of in this business area
Market size for crowdfunding, crowdinvesting and crowdlending platforms and biggest companies in this business area
This market is rather underdeveloped. At the moment, there are two local platforms - a crowd-investing platform (Ventu) and a donation-based platform (donacije.rs) for non-profit organisations.
Additional comments regarding the economic situation for crowdfunding, crowdinvesting and crowdlending platforms or what FinTech’s must be aware of in this business area