The European Union’s Capital Markets Union (CMU Initiative) aims to create a unified and efficient internal capital market within the EU. This initiative led to the establishment of uniform EU capital market regulations, including the Prospectus Regulation, and the Regulation on European Crowdfunding Service Providers for Business (ECSPR), which came into effect on November 27, 2020, and must be applied from November 2023. In addition, several member states have established their own laws for crowdfunding, with regulations stipulating minimum requirements for investor information and rules for CSPs. Prior to obtaining its license under ECSPR, TokePortal operated within the domestic legal frameworks. The essence of ECSPR is touched upon in many points of the Frequently Asked Questions, and this is discussed in our summary article: A New Era in European Capital Markets: The European Crowdfunding Regulation Comes into Effect
The Prospectus Regulation is surpassed by the annual total limit for capital raising without a prospectus and the abolition of the number of participating investors. This makes crowdfunding a completely public offering, which can be advertised cross-border without obstacles. Each Campaign Owner can raise up to 5 million euros per year in capital in exchange for issuing transferable securities as per the securities supervision of its headquarters, to certified investors classified by the licensed CSP as Sophisticated or Non-sophisticated. The law of the headquarters and the target country for business development also applies to marketing communications.