Fri. Nov 15th, 2019

Planet Compliance

Innovation & Regulation in Finance

FCA publishes review of regulatory regime for crowdfunding

2 min read

The FCA on 3rd Februay has published its review of the regulatory regime for crowdfunding and the promotion of non-readily realisable securities by other media.

The review focuses on the kinds of crowdfunding activity that is regulated by the FCA:

  1. Loan-based crowdfunding crowdfunding platforms,2 on which people lend money to individuals or businesses in the hope of a financial return in the form of interest payments and a repayment of capital over time (this excludes some business-to-business loans); and
  2. Investment-based crowdfunding platforms, on which people invest in unlisted shares or debt securities issued by businesses.

The report provides details to both areas, changes to the market, authorisation of firms and its process, supervision by the FCA and international action.

The full report can be found here.

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A solution that may have found its problem: Trade Finance and BlockchainThe honeymoon for Blockchain is over. Excitement has turned into disillusion and disappointment. Coined (no pun intended) a solution looking for a problem, the application of the technology in Trade Finance is a silver lining in times of Blockchain gloom. Let’s face it: Blockchain has seen better times! Cryptocurrencies have been in a slump even though Bitcoin recovered half of the value of the heydays in 2017. The majority of cryptos though are still far away from such heights. Initial Coin Offerings are basically dead: While 2018 with a total of almost $11.4 billion still exceeded the previous year against little more than $10 billion, representing a growth of 13%, it needed 2,284 ICOs to do that as opposed to only 966 in 2017. However, this is nothing compared to this year, which with little more than a month to go has only seen 204 ICOs raising a mere $3,175 billion. 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