The Parliament of Moldova adopted in the first reading the draft Law on Collective Financing Services.
According to Deputy Prime Minister, Minister of Economic Development and Digitalization Dumitru Alaiba, the purpose of this document is to support and offer an alternative financing for start-ups, small and medium-sized enterprises and local public authorities through collective financing platforms (crowdfunding). The bill describes the general rules for the provision of crowdfunding services on the territory of Moldova, general and special requirements for all categories of participants in these legal and economic relations: supplier, investor, developer. Thus, a pooled finance service provider can be a legal entity registered in Moldova and authorized to provide collective financing services. It is stipulated that the developer of collective financing projects is an individual engaged in entrepreneurial activity or a commercial legal entity from Moldova who intends to receive funding for the project through the collective finance platform. An investor can be any individual or legal entity that provides loans or purchases shares as part of a crowdfunding project. The bill was developed by the Ministry of Economy with the assistance of development partners and is aimed at democratization and expanding access to capital. The legislative initiative must be approved in the second reading, and before that, public consultations with all interested parties will be organized. It is planned that the law will come into force on January 1, 2024. As the Ministry of Economy noted earlier, 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 start-up entrepreneur. The developed draft Law on Collective Finance Services is aimed at facilitating access to finance, 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 financing of a project or enterprise by collecting money from a large number of people, usually through 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. 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. // 02.03.2023 — InfoMarket
