Abstract
Crowdfunding is not regulated in the Cypriot legal system. As a result, business or other entities who wish to initiate crowdfunding activities have to deal with a complex legal framework and are subject to formalities and obligations which have been designed for “mainstream” classic means of attracting funds. This study thus aims to highlight some of the main legal issues raised by the phenomenon of crowdfunding in the Cypriot legal context.
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Notes
- 1.
Section 25 (2) cap. 149.
- 2.
Section 6 of law 10(I)/1994.
- 3.
According to section 2 (2) of cap 149 (contract law) consideration may be any promise of act or abstention.
- 4.
See section 25 (3) of cap 149.
- 5.
Article 6 (1) and (2) of the Rome I Regulation.
- 6.
Initial Capital Requirements range between EUR 20,000 in case it offers money remittance services, to EUR 125.000 if additional services are offered.
- 7.
See for example Germany judgment in the “Lieferheld”-case of the Cologne District Court dated 29.09.2011 (Landgericht Köln, Az. 81 O 91/11) and also Aschenbeck-Florange and Nagel (2013).
- 8.
Article 3(b) of the Payment Services Directive.
- 9.
Article 3 of the Payment Services Directive.
- 10.
Article 3(d) of the Payment Services Directive.
- 11.
Article 3(c) of the Payment Services Directive.
- 12.
Art. 4 (14) of Directive 2005/60/EC of the European Parliament and of the Council of 26 October 2005 on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing.
- 13.
As defined in section 2 of the Law.
- 14.
Art. 2(1)(d) Prospectus Directive and Art. 2 of the Prospectus Law.
- 15.
See e.g. case C-26/13, Árpád Kásler and Hajnalka Káslerné Rábai versus OTP Jelzálogbank Zrt, ECJ (2016) which was based on the Directive 93/13/EEC (unfair terms in consumer practices) and recognised the Banks “duty to actively inform consumers to ensure the latter have understood the terms”.
- 16.
Term 3.3 of the Terms and Conditions. Available at: http://www.wehug.org/terms-conditions/.
- 17.
Art.6(2)a Directive 2002/65/EC of the European Parliament and of the Council of 23 September 2002 concerning the distance marketing of consumer financial services and amending Council Directive 90/619/EEC and Directives 97/7/EC and 98/27/EC.
- 18.
According to Article 8 of the Law 156 (I) 2004 which implemented Article 5 of the Directive 2000/31, “In addition to other information requirements established by Community law, the service provider shall render easily, directly and permanently accessible to the recipients of the service and competent authorities, at least the following information: (a) the name of the service provider; (b) the geographic address at which the service provider is established; (c) the details of the service provider, including his electronic mail address, which allow him to be contacted rapidly and communicated with in a direct and effective manner; (d) where the service provider is registered in a trade or similar public register, the trade register in which the service provider is entered and his registration number, or equivalent means of identification in that register; (e) where the activity is subject to an authorisation scheme, the particulars of the relevant supervisory authority”.
- 19.
Article 7 of Law 156 (I) 2004 (electronic commerce law).
- 20.
See Article 17 of Law 156 (I) 2004 (electronic commerce law).
- 21.
Directive 2000/31/EC of the European Parliament and of the Council of 8 June 2000 on certain legal aspects of information society services, in particular electronic commerce, in the Internal Market (‘Directive on electronic commerce’) OJ L 178, 17.7.2000, pp. 1–16.
- 22.
CJEU, C-324/09, L’Oréal SA and Others v eBay International AG and Others, 12 July 2011, ECLI:EU:C:2011:474.
- 23.
As stemming from Erlanger v New Sombrero Phosphate Co (1878).
- 24.
As stemming from Whaley Bridge Calico Printing Co v Green (1879).
- 25.
With the complete reference of Hedley Byrne & co Ltd. v Heller Partners Ltd. (1964).
- 26.
Referred to as Premier Chemical Co. Ltd. ν 1. Bank of Cyprus Ltd., 2. Central Bank of Cyprus (1998).
- 27.
With the full reference of Valentina Koursoumba v Marios Satsias (First instance Court of Larnaca, 2006).
- 28.
Referred to as Spice girl Ltd. ν Aprila World Service (2002).
- 29.
As shown by Marfin Popular Bank Public Co. Ltd. ν. Andrea Michael (2012).
- 30.
Referred to as Loan Impairment and Provisioning Procedures Directives of 2014 to 2016.
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Argyropoulou, V., Jougleux, P., Synodinou, TE. (2021). Ask and you Shall Receive: Crowdfunding in Cyprus. In: Kleiner, C. (eds) Legal Aspects of Crowdfunding. Ius Comparatum - Global Studies in Comparative Law, vol 55. Springer, Cham. https://doi.org/10.1007/978-3-030-79264-0_7
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