Fintech Law Series: Crowdfunding Platforms
We continue our series on the different business models regulated under Chile’s Fintech Law 21.521. Today we examine Crowdfunding Platforms.
Regulatory Framework
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Fintech Law 21.521: General framework governing technology-based financial services
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General Rule No. 524 (NCG N°524): Regulation detailing the requirements for registration and authorization
Checklist: Are You a Crowdfunding Platform?
According to Fintech Law 21.521, your company could be considered a crowdfunding platform if it engages in the following activities:
1. Promotion and Dissemination
Does your platform…?
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Operate a space where investment projects are showcased?
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Allow promotion of financing needs?
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Help potential investors understand the projects?
Practical Example:
If you run a website where entrepreneurs can present their projects and seek investors, you likely qualify under this category.
2. Connection and Intermediation
Does your company facilitate…?
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Contact between projects and potential investors?
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Exchange of relevant decision-making information?
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Direct interactions between interested parties?
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Execution of financing transactions?
3. Support Services
Do you provide…?
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Tools for direct communication
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Systems for information sharing
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Guidance throughout the funding process
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Management of the financing transaction
Key Obligations
If you've identified your company as a Crowdfunding Platform, you must:
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Implement due diligence processes for projects
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Establish risk management systems
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Maintain records of transactions
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Ensure transparency of information
Important Note
The CMF has set February 2, 2025 as the final deadline to register in the Financial Service Providers Registry.