by: Grow VC Group
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While much is known on online investing in Western Europe, less information is available on how the sector is developing in the Eastern part of the continent. Therefore we thought to take a closer look to the situation in the Baltic States, namely Estonia, Latvia and Lithuania.

Although the market has not the same dimension and diffusion of some of its western counterparts, like the UK or France, it still has an interesting potential, that some early stage platforms are already exploiting.

Lithuanian authorities have recently reacted to the growing peer-to-peer lending sector, creating a legal framework that it is meant to enter into effect from February 2016. The regulation associates online lending portals to consumer credit providers and therefore requires they register with the Bank of Lithuania and comply with same requirements, such as advertising limitations, pre-contractual information requirements and creditworthiness assessment rules.

Close-by Estonia, instead, has no specific regulation for crowdfunding, but the Government has launched, last May, an ambitious e-residency program that could turn useful not only to local online investing platforms, but also to foreign ones. In particular, the program provides a very high authentication level, with e-residency assigned only by Estonian embassies around the world, upon presentation of a valid passport and after the government has conducted thorough background checks on the applicants. Last but not least, Latvia has not adopted any specific framework for online investing, but local actors have formed a P2P association to make sure possible future policies goes into the desired direction.

We still don’t know how these recent measures and changes adopted by the Baltic States will impact the local growing online investing sector, but will keep on the lookout for any interesting development.

Read the whole article on Crowd Valley Blog.

Riga, Latvia

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Grow VC Group The Grow VC Group is the world leading, global pioneer of securities crowd funding, peer to peer marketplaces, new investment models and global business development. Established in 2009, the Group has developed new investment models on six continents and continues to innovate the global market.

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