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Financial return crowdfunding models such as “crowd-investing” and “crowd-lending” have a growing popularity in the current economic environment in Greece in light of the scarcity of financing and the need for economic growth through support of small and medium enterprises (SMEs) and start-ups. However, the Greek legal framework may lack an appropriate regulatory approach for this type of investment or loan. For instance, Greek Banking Law prohibits any granting of credit by non-holders of authorization by the Bank of Greece; thus, some crowdfunding models work only as an intermediary between the lender and the borrower. In addition, some crowdfunding platforms may fall under the Greek anti-money laundering regulations, as well as EU directives and relevant national legislation regarding the transparency of online platforms.
In February 2016 the National Bank of Greece announced the launch of Act4Greece, a crowdfunding platform which will fund several areas such as social solidarity, entrepreneurship, culture, and innovation. As this platform is operated by a credit institution, authorization requirements and other legal obligations might not pose a significant problem. However, even in this case there are grey zones awaiting interpretation and regulation similar to those that exist in other countries.
If you are interested in investing in a crowdfunding scheme or in launching one, it is critical you understand and comply with applicable national, and possibly international, laws and regulations. Your attorney at an Ally Law member firm will be able to guide you through the maze of applicable laws and conventions to assure your company’s compliance and avoidance of costly penalties for violation. Ally Law member firms from every country have attorneys experienced in all aspects of financial and investment laws, including current crowdfunding protocols. For more information about our services in this area, contact us at yourally@ally-law.com.
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By Your Legal Partners.
