Moldova will provide entrepreneurs with access to collective financing services (crowdfunding).
This is envisaged by the draft law on collective financing services approved by the government at a meeting on Wednesday, which will allow legalizing financial crowdfunding in our country. According to the Ministry of Economy, limited access to financing, the lack of fixed assets or assets that can serve as a guarantee, are the main obstacles in the way of a novice entrepreneur. The bill approved by the Cabinet of Ministers is aimed at facilitating access to financing, especially in the early stages of business development in the first years of operation. Thus, the state undertakes to create conditions for the introduction of a modern concept of financing and stipulates general and special requirements for all categories of participants in these legal and economic relations (supplier, investor, developer). The bill provides for activities through an electronic platform and using secure means of identification, which will avoid bureaucratic procedures, and payments and transactions of the crowdfunding process will be carried out exclusively through bank transfer and payment instruments offered by payment companies. Collective financing or crowdfunding is the practice of financing a project or enterprise by raising money from a large number of people, usually via the Internet. Crowdfunding is a form of crowdsourcing and alternative financing, a way to increase access to capital, makes it easier for the community to select entrepreneurial sectors of the economy that require capital investment and have limited access to traditional sources of funding. The Draft Law on Collective Financing Services regulates the basic principles and requirements for participants in the field of collective financing, stipulates the main types of services in this field and the information that must be provided on the collective financing platform, the rules for issuing authorization and ensuring supervision in this field. Crowdfunding activities involve attracting funds from many investors (both individuals and legal entities) through online platforms to finance the entrepreneurial goals of small and medium-sized enterprises. The use of secure means of identification is expected to avoid bureaucratic procedures. It is planned that all payments and transactions in the crowdfunding process will be carried out exclusively through bank transfer and payment instruments offered by payment companies. Earlier it was reported that through collective financing (both financial and non-financial crowdfunding) in Moldova it is possible to raise up to $130 million per year, of which at least $40 million - for the implementation of SME initiatives and projects. // 18.01.2023 — InfoMarket
