#TOKEPORTAL
The crowdfunding regulation
The European Parliament modifies the crowdfunding regulation especially focusing on the investor protection and the operation of CF platforms.
The following changes shall be introduced of current draft proposal:
- extend the scope of the legislation to include crowdfunding offers of up to EUR 8,000,000 (the Commission had originally proposed that the rules only apply to offers up to EUR 1,000,000),
- allow crowdfunding platforms to apply for a single, Union-wide authorization to carry out crowdfunding services cross-border in the EU market,
- ensure investors are protected uniformly across the EU when accessing crowdfunding investment opportunities, for example by providing that investors must be informed about the risks associated with crowdfunding, and assessed on their understanding of financial products before being allowed to invest.
- to require crowdfunding service providers to disclose annually the default rates of the crowdfunding projects offered on their platforms over at least the preceding 24 months;
Regulation would offer ‘one-stop-shop’ authorization to provide services throughout the EU. At the same time firms must be aware of any disclosure requirements that would go beyond their current national regimes.
