(3 April 2018 – Europe) To enable crowdfunding platforms to engage in cross-border activities, the European Commission is introducing a new regime for European crowdfunding service providers (CSP).
The regulation applies to lending-based and investment-based crowdfunding for business.
Currently crowdfunding is primarily regulated at a domestic level however the Commission is concerned that the divergent national rules are inhibiting the growth of cross-border activity and so is seeking to specifically regulate business crowdfunding at the EU level.
The regulation would give CSPs the ability to opt for a single EU-wide regime regulating authorisation, organisational, operational and supervisory requirements.
The European Securities and Markets Authority is to be responsible for authorising and supervising CSPs with the Commission looking to have the regulations adopted by mid-2019.