Duma seeks to limit private investments in crowdfunding
A new draft law aimed at regulating crowdfunding platforms has its Second Reading in the Russian State Duma next month.
The latest text of the Bill states that private Russian citizens without professional investor status will be unable to put in more than 600,000 roubles into initiatives supported through crowdfunding platforms each year, and no more than 100,000 per project. This should, according to the Central Bank of Russia, help reduce personal financial risk, reports the Royal Bank of Canada.
Anatoly Aksakov, head of the Duma’s Committee on Financial Markets and one of the Bill’s authors, told the ASI that the current version of the draft law does not extend the financial limit to social or charitable projects and would only apply to private investors who put money into commercial ventures.
Furthermore, the Bill poses a threat to the activities of crowdfunding (investment) platforms. Russia’s Central Bank has called investing through these fora “a risky business”, with economists saying that such action could lead to the loss of all invested funds. The limit is therefore being proposed to minimise financial risk.
During the Bill’s First Reading, it was said that the investment limit would be set by the Bank of Russia. Then it was assumed that the sum of 600,000 roubles would be the lower threshold for activities and subject to the mandatory oversight of Rosfinmonitoring as part of its efforts to combat money-laundering.