We are pleased to announce that Profitus has received the European Crowdfunding Regulation (Regulation on European Crowdfunding Service Providers – ECSPR) ESMA license, which from now on allows us to operate and provide services as a crowdfunding service provider in all European Union member states.

This will enable us to expand more actively into foreign markets and broaden not only our investor base, but also the opportunities to finance projects across the entire European Union. We will be able to provide services more actively not only in our current markets of Lithuania, Estonia, Latvia, and Spain, but also in new markets, thus creating opportunities for investors to further diversify their investments and enrich their portfolios with unique projects.

As of today, only 8 out of 22 crowdfunding platforms in Lithuania have obtained this license and are authorized to operate.

Importance of the New License

This new regulation marks a positive change in the crowdfunding market and represents a significant step forward, as crowdfunding platforms operating across the European Union demonstrate the maturity of this market and its continuously growing importance in the financial sector.

This means that we will be able to provide our services to an even broader range of clients.

Why Is This License Important for Investors?

In Profitus’ view, this updated regulation is a welcome development, as it raises the standards for crowdfunding platforms to operate under stricter requirements. This will ensure greater transparency in the market, make this investment tool safer than before, and help standardize the information provided by platforms as well as the terms of financed projects. As a result, it will foster healthy competition among crowdfunding market participants and contribute to the improvement of service quality.

What Changes Can Be Expected?

Cooling-off period – non-sophisticated investors will have the right to withdraw from an investment within a specified period after making it.

Until now, the Profitus platform was licensed under the Lithuanian Law on Crowdfunding.

Profitus began financing business loans in 2018, and to date we have already financed...