London, 20th July – InSoil, a European climate tech investment marketplace, has gained the European Crowdfunding Service Providers (ECSP) licence. This will accelerate its financial service expansion in Europe.
For several years, one of the largest hurdles faced by crowdfunding platforms has been the lack of regulations. Seeking to offer their services across borders, these platforms have encountered diverging licensing requirements across the European Union. This has resulted in high operational and compliance costs, which in turn prevented many from scaling effectively.
The ECSP licence now provides easier access to the European market. It lays down a set of unified rules for investor protection, transparency, and operating processes. ECSP also allows FinTech marketplaces to list securities from farm owners. They can raise up to €5 million for transition toward more sustainable agriculture practices.
Laimonas Noreika, Founder of InSoil comments: “A unified regulation of FinTech marketplaces is a big step forward for Europe in increasing the access to capital for small and medium sized businesses. It also makes the whole market more transparent and safer, as all platforms must be compliant with the regulation by November 2023.”
The Climate Tech space is developing rapidly. Achieving such a licence will leverage efforts to improve sustainable practices developed throughout the supply chain. This includes providing farmers with regenerative agriculture practices, and guiding businesses on what they can do to help reduce carbon emissions.”
Last year, it was reported that crowdfunding increased by 154 per cent for Climate Tech businesses as people are becoming more environmentally-conscious.
The licence will ultimately bolster InSoil’s progress of removing one gigaton of carbon dioxide from the atmosphere by 2050. It will also spearhead the launch of Green Loans. This is a debt instrument that enables retail and institutional investors to get returns on the sale of CO2 removal credits generated from European farmland.
