EU Crowdfunding Regulation

June 10, 2021

Regulation (EU) 2020/1503 of 7 October 2020 on European crowdfunding service providers for business (the Regulation) will apply in all Member States as from 10 November 2021. Its accompanying directive (EU) 2020/1504 (the Directive) amending directive 2014/65 EU (MiFID II) must be implemented into the laws of the Member States by 10 May 2021.

The Regulation establishes a harmonised legal framework for crowdfunding service providers (CSPs) operating a public digital platform in order to facilitate the matching of prospective investors or lenders with businesses (the Project Owners) that seek funding by way of loans (lending-based crowdfunding) or acquisition of transferable securities (investment-based crowdfunding).

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