Global fintech and funding innovation ecosystem

European Crowdfunding Platforms Licensed Under ECSPR

Crowdfund Insider | | Jan 24, 2023

Euro - European Crowdfunding Platforms Licensed Under ECSPRIn November 2021, pan-European crowdfunding rules became actionable after approval by the European Union in 2020. Under the new rules, or European Crowdfunding Service Providers Regulation (ECSPR), a platform may raise up to €5 million from investors in all member states. This opens up investment crowdfunding to over 300 million EU citizens.

  • The industry has heralded the new rules as a transformative event – a change in policy that took around 9 years of advocacy from industry insiders.
    • At the same time, ECSPR is foundational to the concept of European monetary union – the ability for goods and capital to flow seamlessly across the EU.
    • Under the new rules, a securities crowdfunding provider must be approved by the “relevant authority” within the country where it is based. This has led to some discrepancies between regulators as some have moved quicker to craft a process for ECSPR approval while others have moved more slowly. The disparity between countries led the EU to delay full compliance until November 2023 (originally set for last November).

See:  Harmonized European Crowdfunding Rules Kickoff Allowing up to €5 million

  • After a two-year period, the updated rules are expected to be reviewed, and there is a possibility the funding cap will be raised.
  • The harmonization is expected to generate more competition as well as consolidation in the industry. Invesdor is one platform that moved quickly to merge with other platforms. ECSPR will also encourage international (or non-European) platforms to enter the EU.
    • Wefunder, one of the largest Reg CF Funding Portals in the US, was only recently approved to provide securities crowdfunding service in the EU.
    • Seedrs, once a top UK platform that has been active in Europe, was purchased by Republic in 2021.

Continue to the full article --> here


NCFA Jan 2018 resize - European Crowdfunding Platforms Licensed Under ECSPRThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - European Crowdfunding Platforms Licensed Under ECSPRFF Logo 400 v3 - European Crowdfunding Platforms Licensed Under ECSPRcommunity social impact - European Crowdfunding Platforms Licensed Under ECSPR

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - European Crowdfunding Platforms Licensed Under ECSPR




 

Leave a Reply

Your email address will not be published. Required fields are marked *

eight − 6 =