We are happy to announce that EstateGuru has received a Best Practise Label from FinanceEstonia.
Being a market leader gives us extra responsibility to work closely with regulators in all our operating countries and make sure that the sector is healthy and viable. Acting responsibly and supporting regulations is especially important in these turbulent times as we witness the first crowdfunding platforms going bankrupt as well as the first scams emerging in Europe.
Pan-European crowdfunding regulations should be in place by 2021 at the latest, at which time all the countries in the region will have the same conditions for registering and operating crowdfunding platforms. Until then, in Estonia, the sector is self-regulated by the Crowdfunding Best Practice, which complies with the European regulation principles. The purpose of Crowdfunding Best Practice initiative is to assist market players with effective self-regulation and to bring trust and transparency to the sector. Every year, the platforms undergo a thorough inspection by independent third parties (the commission consists of various law firms, not related to crowdfunding). We strongly advise all investors to keep an eye on FinanceEstonia’s website, as they award the Best Practice Labels.
The sector is developing rapidly, and the market share of alternative finance is still increasing because there’s a clear need in the market. Crowdlending plays an essential role in future financing models as alternative financing is crucial in contributing to cross-border businesses and business models.