Glossary
Crowdfunding Platform
An online crowdfunding platform that connects investors with enterprises or individuals seeking financing for projects. Funds can be raised through loans (peer-to-peer lending), equity participation (equity crowdfunding), debt financing (debt crowdfunding), donations, or pre-financed rewards (reward-based crowdfunding). The activities of these platforms are governed by Regulation (EU) 2020/1503 and the Markets in Financial Instruments Act, where they are classified as “providers of crowdfunding services for enterprises.” When offering investment products, they are subject to licensing and supervision by the Financial Supervision Commission. These platforms provide access to alternative investment opportunities but involve risks such as credit risk, lack of guarantees, and regulatory limitations.
Crowdfunding Service Provider
A registered legal entity that carries out intermediation activities through a crowdfunding platform by offering services for raising funds from multiple investors with the purpose of financing projects, start-ups, or other initiatives. The provider is obliged to operate in compliance with the requirements for transparency, investor protection, and regulatory oversight, as set out in the Law on the Provision of Crowdfunding Services and the applicable European legislation (Regulation (EU) 2020/1503). In addition, the provider is required to submit data to the Bulgarian National Bank for the Central Credit Register, providing monthly information about its clients.
Crypto Asset
A digital asset that uses cryptography and blockchain technology for security, ownership verification, and transaction execution. Crypto assets can represent various forms of value or rights, are not issued by a central bank, and are not legal tender, but they can be used for trading, investing, or accessing decentralized services. Examples include cryptocurrencies (e.g., Bitcoin, Ethereum) as a medium of exchange; tokens that provide access to services, voting rights, or ownership; stablecoins pegged to a currency; and non-fungible tokens (NFTs), unique digital assets linked to art, music, gaming, and more.
Cryptocurrency
A crypto-asset and means of payment based on blockchain or similar technology and cryptography, which allows transactions to be carried out without the involvement of traditional financial institutions. Cryptocurrencies are neither guaranteed nor backed by a central bank like traditional currencies, which is why they are often also referred to as virtual currencies.
Currency
The official monetary unit and system of money in common use within a particular country or economic region. It typically consists of coins and banknotes issued by a government or central bank and is recognised as legal tender.
Currency - glossary for children
The official money used in a country or group of countries.
Current account
A bank product designed for the daily management of funds, including deposits, withdrawals, and making payments. A debit card is often issued with the account.
Current Account - glossary for children
A bank account used to pay, transfer, and receive money.
Customs Duty (Tariff)
A tax imposed on the import or export of goods when crossing the borders of a country or a customs union, aimed at protecting the domestic market, promoting local production, and generating revenue for the state budget.
Cybersecurity
A set of policies, technologies, processes, and actions aimed at protecting computer systems, networks, and data from unauthorized access, malicious attacks, damage, information leakage, or service disruption. The goal of cybersecurity is to ensure the so-called “security triad” of information and digital systems –Confidentiality, Integrity, Availability (CIA).
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