Robo.cash considers becoming regulated
Croatia-based peer-to-peer lending platform Robo.cash is considering becoming regulated, and is currently looking “various licensing options”.
In an interview with P2P review site Sneakypeer, Robo.cash said that it will only become regulated if it can find a model that works for it.
“We are considering various licensing options, but currently there is no variant that fits our model,” Robo.cash said. “As soon as we find a suitable option, we will definitely use it.”
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The platform has been in operation since 2017 and has reported zero defaults to date. Robo.cash noted that it complies with all of the applicable laws and regulations of the Republic of Croatia.
However, the platform said that there are some potential drawbacks to regulation.
“Obtaining a licence is a platform step towards building investor confidence,” the platform said.
“Given that the P2P market has all the prospects for development, the process of implementing regulation is a necessary measure, especially after the cases with the fraudulent schemes of some platforms.
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“At the same time, having a licence can bring certain restrictions for the platform, since many actions will require approval from the regulator. There will be more requirements for investors as well, and an increase in demand may lead to a decrease in profitability.”
Robo.cash has an advertised annual return rate of 14 per cent, which Sneakypeer noted is “significantly higher than the current market interest rate, indicating a slight increase in risk”.
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