CROWDFUNDING SYSTEMS: evaluation and government regulation in the conditions of reengineering

If the current version of the draft law on the development of co- financing is adopted, it will only apply to models of equity crowdfunding and mutual lending, requiring that the investor receive shares or bonds that provide interest or dividends for a certain period of time. The maximum amount that can be collected is 1,000,000 euros per company. Business entities operating crowdfunding platforms in Romania have a minimum authorized capital of 25,000 euros, must have a professional insurance liability, and must be registered with the Romanian Financial Supervisory Authority (FSA). The all-or-nothing principle will be applied for funding, meaning that if the funding goal is not met, the funds will be reimbursed to investors. The initial contribution of the project authors should be at least 5%. It is also expected that the tax exemption will apply to dividends that are returned by the enterprise to contributors (not exceeding the amount of the loan provided). There are numerous laws that could potentially apply to the equity crowdfunding and lending model in Romania, depending on the financial structure used by the crowdfunding platform. They include: ڰ rules for mediation and long-distance sales regardless of the model used by the platform; ڰ banking regulation when financing is in the form of loans; ڰ regulation of securities when investments in shares are required (or investments in debt securities); ڰ regulation of payment services when funds are paid through the platform. Donation and non-financial remuneration models are usually not covered by the definition of financial services, financial or investment instruments in Romania, and therefore go beyond the restrictive aspects of financial regulation. Some of the crowdfunding platforms that already existed in Romania have developed significantly in recent years and have managed to attract and finance more projects. Some crowdfunding platforms have appeared, while others have ceased operations. More than 90% of projects are funded by donations, and several projects are innovative. From a technological point of view, Romania uses high technologies, which makes it easier for operators of crowdfunding platforms to act. However, the amount of capital raised from investors remains small, and fixed assets come from non-governmental organizations, private companies, or individuals. Most investors seek to invest their funds 100