A few years ago, the raising of funds looked to have an exciting future. Crowdfunding and peer-to-peer financing were becoming ever more popular; Bitcoin was gaining legitimacy; Blockchain, the technology behind Bitcoin, was attracting serious interest; and generally financial technology (Fintech) was rapidly evolving. That is still true today but the legal and regulatory framework is taking longer to develop. Jersey as an innovative jurisdiction is working hard to meet the challenges.

Crowdfunding and peer-to-peer

Crowdfunding is a method of raising funds for a project or an idea from a large number of people usually via an online platform. Crowdfunding falls into four main types – Donation, Reward, Investment or Loan:

Donation-based crowdfunding is where people give money to a person or organisation to support their activities.

Reward-based (or pre-payment-based) crowdfunding is where people give money in return for a reward, service or product.

Investment-based (or equity-based) crowdfunding permits investment in new or established businesses (typically in illiquid securities such as shares in a company).

Loan-based (or debt-based) crowdfunding, also known as ‘peer-to-peer lending’, where people lend money in return for interest payments and a repayment of capital over time.

Read More

Share
Twitter LinkedIn Email Save as PDF
More Publications
5 Jan 2022 |

Trustee Knowledge Series: Advanced Paper Six: Overview of protectors 'ad serviendum ac protegendum”

Appleby Private Client & Trust Partner David Dorgan has authored and distributed a series of Tru...

25 Nov 2021 |

Regulatory Approach to ESG across the Crown Dependencies

New requirements may require investment products to display a label reflecting their sustainability ...

24 Nov 2021 |

'Jersey's Relationship with India: Political, Commercial and Cultural Connections'

Jersey First for Finance has recently published a guide entitled ‘Jersey’s relationship with Ind...

18 Nov 2021 |

Trustee Knowledge Series: Advanced Paper Five - Trusts with Reserved Powers

Appleby Private Client & Trust Partner David Dorgan has authored and distributed a series of Tru...

11 Oct 2021 |

Trustee Knowledge Series: Advanced Paper Four: The proper law and place of administration of trusts and courts with exclusive jurisdiction

Over the next twelve months, Appleby Private Client & Trust Partner David Dorgan will author and...

7 Oct 2021 |

Jersey: an evolving global platform: Jersey First for Finance 2021

This article, taken from Jersey ~ First for Finance ‒ Celebrating 60 Years of Finance 1961-2021 wa...

4 Oct 2021 |

Navigating the Jersey M&A landscape (2 of 3)

This is the second of a series of three articles, each dealing with topics to be considered when buy...

Contributors: Andrew Weaver
22 Sep 2021 |

Minute Writing Training

Trustees are under a statutory duty to keep accurate records of their trusteeship, but what does tha...

15 Sep 2021 |

Navigating the Jersey M&A landscape

This is the first of a series of three articles, each dealing with topics to be considered when buyi...

Contributors: Andrew Weaver
2 Sep 2021 |

Duties of Trustees

The relationship of trustees to beneficiaries is viewed as fiduciary, meaning there are certain equi...