The EU Regulation on Crowdfunding Service Providers regulating
their functioning and activities entered into force on 10 November
2021 and implies specific licensing requirements at Luxembourg
level.
Crowdfunding is a form of financing increasingly used by
start-ups and small and medium-sized enterprises, typically relying
on small investments. Over the past few years, several crowdfunding
models have emerged within the European Union. Only some forms are
currently covered by financial sector regulation.
Regulation (EU) 2020/1503 of 7 October 2020 on European
Crowdfunding Service Providers for business (“Regulation ”) is
directly applicable in all Member States since 10 November 2021. It
promotes and regulates the use of financial intermediation where a
crowdfunding service provider, without taking on own risk, operates
a digital platform open to the public in order to match or
facilitate the matching of prospective investors or lenders with
businesses that seek
