Crowdfunding in Armenian legislation, how is the crowdfunding regulated, are the current laws and methods of taxation specific enough for crowdfunding

Abstract

The 21st century brings up a lot of new opportunities. The startup culture is developing at a high pace. New alternative methods of financing are being created that provide unique opportunities to small enterprises and startups. The legal framework and regulations of developed countries are hardly keeping up with the overall progress pace. One of the new methods of alternative financing is crowdfunding. The crowdfunding had paved its way to the Republic of Armenia as well as most of the newly established companies, and startups are using crowdfunding as a method of financing. The legal and regulatory frameworks are too general and broad for the newly created phenomena. The lack of specification in Armenian law, mainly in Tax and Civil codes unnecessarily damages the financial capabilities of already financially unstable startups.