Homesocial lendingMintos is now regulated - but what are the downsides for investors?

Mintos is now regulated – but what are the downsides for investors?


Mintos has finally launched its notes program. Notes will be the new way that Mintos structures all new investments from 1 July 2022. For full details, refer to the Mintos description page here, and their Q&A page here. As part of these changes, Mintos has become a regulated investment firm. It will comply with the European MiFID legislation and be regulated by FCMC (Latvia). Investments offered by Mintos will be regulated financial instruments.

What does this all actually mean for investors? It provides additional protections in the event that Mintos goes out of business.  Investors may be able to recover 90% of losses relating to Mintos ‘failing to provide investment services’, up to a limit of €20,000. This should provide some additional security around protection of uninvested cash, or Mintos committing fraud (for example). However it is important that investors understand that this does not cover losses relating to loan defaults, or lending company failures.

Below we highlight the 3 most important differences between regulated notes and the unregulated claims that Mintos has offered up to now. Unfortunately, not all of the changes being made are positive for investors. We have listed four important downsides that investors should be aware of. 



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