Crowdfunding regulation models: international and Russian experience in context of sustainable development

Abstract

The conditions, promoting active development of crowdfunding market through which the so-called “alternative financing” is implemented, have been created in the global economy in the last few years. The article discusses the transformation experience of crowdfunding model types during the period from 2014, describes the existing regimes of legal regulation of crowdfunding in worldwide practice. Special attention is given to the description of Russian legal initiative aimed at the implementation of crowd-technologies in the investment activities. The authors identified three approaches to the crowdfunding regulation: prohibited, self-regulated and regulated. The Russian approach was changed from self-regulated to regulated with the entry into force of new laws from January 1, 2020. In Republic of Belarus crowdfunding is still self-regulated. Crowdfunding is considered by the authors as a promising financial technology that contributes to sustainable development and economic growth.