Croatia’s Hive5 confirms unregulated status
Croatia-based peer-to-peer lending marketplace Hive5 said it does not perform regulated activities that require a domestic licence, although it is planning to obtain permissions once it expands its business.
Hive5 said that it obtained advice from ECOVIS ProventusLaw, Kvainauskas, Andziulytė, and Partners, a law firm qualified to practice in Lithuania, to clarify its regulatory status and compliance with relevant laws.
Read more: Hive5 pays tribute to Polish lenders as it exits market
The company said that it is not obligated to have a licence from the Croatian authorities and it is not subject to supervision as a P2P lending platform.
The chief executive of Hive5 Ričardas Vandzinskas said that there are plans to obtain a licence once the platform expands into crowdfunding activities.
Read more: Hive5: Consumer loan demand will remain high in 2024
“However, at the moment, there are no positive signs in the real estate markets to start project financing activities,” he added.
“Despite that, our team is working with lawyers to prepare a large package of KYC/AML procedures so we can apply for and quickly obtain a licence whenever necessary.”
The European Crowdfunding Service Providers Regulation (ECSPR) – which aims to harmonise the industry across the bloc – came into effect on 10 November 2023.
However, it is down to individual member states to issue licences.
By the end of November 2023, more than 110 platforms had become regulated under the ECSPR, with that number expected to hit between 130 and 150 by early 2024. However, this means that there are between 20 and 40 platforms still waiting on final approval to operate in the EU.
