Russia sets sights on P2P market supervision to frustrate con artists
8 Jun '17
A draft bill on P2P market regulation is being put together in the Central Bank of Russia. If the bill is passed as is, online platforms for mutual lending will have to be licensed, and will also be expected to disclose lending information to a credit history bureau, an agency which is likely to be set up purposely to support the new regulation, Firrma.ru reported.
The Bank is reported to be launching an experiment, approximately a month from now, to get P2P platforms to operate in full compliance with the new proposed rules. The move is expected to reveal which requirements are beneficial and worth becoming part of the prospective law.
It is expected that the new P2P market regulation bill will be approved and signed into law by the end of this year already. If so, it will come into full force by mid-2018.
There are three types of P2P platforms in Russia which facilitate direct contacts between borrowers and investors on an individual-to-individual, individual-to-legal entity and crowdfunding/crowdinvesting basis. Experts believe regulating the process in Russia is vital to foil fraudsters that scheme to steal investors’ money.