Role of alternative finance
With only one Crowdfunding platform currently existing in the country, which is based on donation or rewards-based Crowdfunding, and involves campaigns supporting charitable causes or the promotion of innovative ideas, the market is still evolving.
On WeHugACause, only two campaigns were hosted in the past and neither of them were successful.
Yes, it seems that the market is beginning to establish itself in 2016. For example, "Crowdfunding Cyprus": a conference on crowdfunding was organised on the 15th June, 2016 by KPMG and the Anirot Development Organisation, to encourage the development of a national regulation and of equity and lending-based crowdfunding. The speakers and panelists included the platform founders, crowdfunding experts, professionals from the banking sector, and government officials.
Currently, only one platform is active in the country (WeHugACause, http://www.wehug.org/)
At the moment, there are no crowdfunding platforms for R&I in Cyprus.
Regulated by the Investment Services and Activities and Regulated Markets Law, Law 144(I)/2007 (“MiFID Law”), which puts into practice the the Markets in Financial Instruments Directive 2004/39/EC (“MiFID Directive”).
CrowdFundRES Report, 2016
|Reward and donation-based crowdfunding||
There is one rewards-based platform active at the moment.
There are no active lending platforms at the moment. Probably because of the strict regulation.
CrowdFundRES Report, 2016
|Is there a specific national regulation in place applying to crowdfunding?||
- Equity-based crowdfunding is regulated according to the Investment Services and Activities and Regulated Markets Law, Law 144(I)/2007 (“MiFID Law”), putting into practice the Markets in Financial Instruments Directive 2004/39/EC (“MiFID Directive”). - Under the Business of Credit Institutions Law 66/1997 (the “Business of Credit Institutions Law”), it is prohibited for any person, other than a licensed credit institution, to engage in the business of taking deposits or other repayable funds from the public unless it has been previously authorised by the Central Bank of Cyprus. Therefore, the development of lending platforms seems unlikely -No prospectus requirement.
A requirement to issue a prospectus applies for the offering of securities to the public. The scope, application and exemptions follow those of the relevant EU Prospectus Directive.
Currently, matching funds, state aid or tax benefits for alternative finance are not available in Cyprus.
|Matching funds initiatives|
|Crowdfunding guidelines for entrepreneurs / investors|
|Guidelines for researchers on crowdfunding for R&I|
PROJECT NAME: Crowdfund an Art Center in Paphos
DESCRIPTION: The project had the aim of financing the creation of the Kimonos Art Center in Paphos, Cyprus. The Art Centre is formed by a staff of four permanent young teachers. The Art Centre can be considered as an attempt to create a platform for innovation, because the personnel is fond of filmaking, videomaking and typical animation techniques. The video presentations created to support the campaign are quite good, considering the fact that they use a broad set of animation techniques (such as stop-motion). The ironic style of the videos helps the potential target to sympathise with the promoters. The campaign has not reached the amount of money desired, but the funds raised have been enough to open the Art Centre anyway.
AMOUNT RAISED: € 5,135 out of 20,610 (the project received all funds raised)
Best Practice 1 - "Crowdfunding Cyprus": conference on crowdfunding organised on the 15th June, 2016 by KPMG and the Anirot Development Organisation, to encourage the development of national regulation and of equity and lending-based crowdfunding. Speakers and panelists included platform founders, crowdfunding experts, professionals of the banking sector and government officials.