On 20 October 2020, Regulation (EU) 2020/1503 in respect of European crowdfunding service providers for business was published in the Official Journal of the European Union. This Crowdfunding Regulation shall apply as per 10 November 2021. The Crowdfunding Regulations provides for a European harmonized legal framework for this type of alternative business finance (both debt and equity financing). Although crowdfunding service providers need to obtain a license, they will also be able to offer their services in other Member State on the basis of a passport. In this blog we have summarized the main takeaways for you.
If you have any questions or do you require legal assistance in preparing for your license application? We look forward to helping you! Please contact Anne Hakvoort or Joost van Hunnik, both FinTech and Regulatory partners with our firm.