Security
Investor Protection on Crowdbase
Regulation is an integral part of the financial industry, which helps safeguard investors from fraudulent practices by unethical professionals.
Crowdbase is regulated by the Cyprus Securities and Exchange Commission (CySEC), the competent authority for financial regulation in Cyprus.
Financial regulation protects investors
Investors benefit from financial regulation as it helps ensure that financial service providers operate ethically and transparently.
The financial system is a critical component of our everyday lives, as it impacts our ability to save, invest, borrow, and make long-term financial decisions. With weak controls in place, financial services firms have very little stopping them from harming investors and undermining the financial system’s stability. Financial regulation serves to prevent undesirable outcomes, and in case they do happen, it helps provide a safety net for investors.
Appropriateness of investment products
Crowdbase must assess each individual investor’s situation and warn them from taking excessive investment risks.
As a regulated entity, Crowdbase must make sure that investors understand the risks associated with each investment on the platform and that they have the financial capacity to handle these risks.
The second step in our onboarding process, the Investor Questionnaire, helps Crowdbase understand each investor’s individual economic situation. This forms a solid base for us to be able to present to you the necessary risk warnings before you make an investment through our platform.
Please note
Although Crowdbase may provide risk warnings for the appropriateness of your investment, we cannot restrict you from investing in an unsuitable product if you still wish to do so.
Key Investment Information Sheet (KIIS)
The KIIS offers a clear and easy-to-understand summary of critical information about each crowdfunding campaign in a standardised format.
The KIIS is an important tool for promoting investor protection and transparency. The EU Crowdfunding Regulation requires project owners to provide standardised information about crowdfunding opportunities, ensuring that investors have a clear understanding of the risks and potential rewards of their investments.
Under the EU Crowdfunding Regulation, investors are required to confirm that they have received and understood the KIIS before making an investment. The KIIS is a legally binding document, and can serve as evidence in legal disputes.
The KIIS for each campaign on Crowdbase can be found in the Deal Terms section on the right hand side of the campaign page, or under the Documents tab of the campaign page.
Frequently Asked Questions
Crowdbase Ltd is authorized and regulated by the Cyprus Securities and Exchange Commission as a Crowdfunding Service Provider (license no. CSP 1/23).
Yes, all clients’ funds are held in a reputable financial institution (Eurobank Cyprus) in a separate account under the clients’ name. All funds are safely withheld until the end of a successful crowdfunding campaign, at which point they are transferred to the crowdfunding company. If the crowdfunding campaign is unsuccessful, all committed funds are returned to the investors’ accounts in full.
All funds are held in our clients' funds account at Eurobank Cyprus and only transferred if the campaign is successful.
No. All investments must be made via card or bank transfer through the platform.
As a regulated financial services provider, we are required by law to verify the identity of all our users. This is part of the global Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, which are designed to prevent fraud and ensure the safety of the platform. Please be assured that your data is encrypted and processed securely by a trusted third-party verification service.
Platforms like Crowdbase are regulated and must follow strict rules. Look for platforms with a license number in the footer.
Crowdfunding platforms are regulated by securities authorities. Crowdbase is licensed by CySEC under license number CSP 1/23.