Argentina to study regulation for crowdfunding portals

Argentina's government will send a bill to congress in the coming weeks to regulate crowdfunding activity over the internet, state news service Télam reported.

The move comes given the rapid growth of Bricksave, a UK-based real estate crowdfunding platform, which launched in Argentina in February and has already seen investments of US$1mn.

The platform allows people to collectively network and pool their funds to invest in the construction or purchase of a large project like a luxury apartment in a city like London or Hong Kong. Investors receive monthly rent proportional to the amount they invested and also a return on their investment if the property is sold.

The portal is aimed at small investors that can invest from US$2,500. The return on such investments is estimated at 8-13%, according to Télam.

"The regulation of collective financing is a priority for the government because it is a method of alternative investment and there are a lot of foreign investors wishing to invest capital in Argentina," Telam reported, citing government sources.

Capital markets and investment fund expert Martin Paolantonio was quoted as saying that collective financing falls under the same laws as any other investments in Argentina and must be registered with the securities commission.

Sofía Gancedo, director of Bricksave Argentina, was quoted as saying that the company has a portfolio of 70,000 properties worldwide that are offered to investors. Since its launch in February in Argentina, properties have been offered in Miami and will soon be offered in New York, São Paulo, Buenos Aires and London.