Features of Legal Regulation of Investment Platforms

Abstract

This article is devoted to the analysis of the legal model of alternative financing - investing using investment platforms. The need for legal regulation of diverse sites (platforms) existing on the Internet, using limitless potential and cross-border opportunities for investment transactions, is no longer in doubt. However, there is fragmentation in the regulatory regulation of such phenomena caused by an ambiguous understanding of digital (virtual) reality, digital rights, digital currency, and the depth of penetration of law into technological solutions. Objective reality testifies to the increasing immersion of man and society into the world of technologies that accelerate communication and exchange, reducing transaction costs. 

The appearance of the Federal Law of the Russian Federation No. 259-FZ dated August 2, 2019 "On attracting investments using investment platforms and on Amendments to Certain Legislative Acts of the Russian Federation" is due to the reaction of the legislator to the active spread of crowdfunding platforms that involve a huge number of small and medium-sized unqualified investors in the process of alternative financing. The spread of such sites has positive aspects (the formation of alternative financing mechanisms for small and medium-sized businesses) and negative aspects (high risk, abuse of site operators and persons attracting investments, violations of investors' rights, terrorist financing, etc.).

The legislator proposed to investors and persons attracting investments an investment model using investment platforms with a limited set of investment methods and tools, as well as the possibility of protecting the interests of participants of the investment platform. Investing is possible through the provision of loans, the acquisition of equity securities placed using the investment platform, utilitarian digital rights, digital financial assets. A set of investment methods, restrictions for unqualified investors, as well as the establishment of investment limits indicates the intention of the legislator to try to regulate a simplified model of high-risk alternative financing for small and medium-sized businesses on the Internet. An important role in the work of the investment platform is played by the operator, who acts as an intermediary and regulator of transactions and settlements. Both the operator and the investment platform must meet the increased requirements imposed by law, which ensure risk reduction and protection of the rights and interests of participants in investment activities. The Bank of Russia provides regulation, control and supervision of investment attraction activities.