3 Keys to Becoming A Crowdfunding Service Provider in Cyprus.
On January 15, 2020, the Cyprus Securities and Exchange Commission (“CySEC”) issued their comments to the questions submitted from the November 2019 Guidance on Crowdfunding in Cyprus, and included the following tenements for Crowdfunding Service Providers (“CSP”) to adhere to in offerings.
If you are thinking of becoming a CSP, here are the 3 keys you should know:
A Crowdfunding Service Provider (“CSP”) must be impartial and neutral. The CSP is the glue that brings together project-owners and investors. As such, both parties are deemed to be clients of the CSP. To avoid conflicts of interest, the CSP must be impartial and fair to both parties and must reflect this in their agreements with all parties. Moreover, the CSP cannot give investment advice.
A CSP has to operate a platform that they exclusively own and operate. No other party is allowed to have access to the CSP’s platform. This helps to ensure that the personal and private information of the project-owners and the investors is safeguarded.
A CSP has the power to act independently in assessing whether or not the project-owner has given misleading or inaccurate information and if so, to withdraw the project from the platform and return client funds.
If you are interested in becoming a CSP, please contact us at firstname.lastname@example.org