In recent years, the financial sector has undoubtedly
experienced a rise in crowdfunding services. Nonetheless, despite
its popularity, this alternative method of raising capital, or
venture, or cause by gathering small amounts of money from a large
number of individuals remained unregulated throughout the European
Union ("EU") until 2021.
Due to the lack of harmonised regulation, the EU was triggered to implement a
uniform legislative framework for the provision of investment-based and lending-based crowdfunding
services related to business financing, as well as for ensuring the
protection of investors, which can be summarised in the European
Crowdfunding Service Provider Regulation (Regulation (EU) 2020/1503
of the European Parliament and of the Council of 7 October 2020 on
European Crowdfunding service providers for business, and amending
Regulation (EU) 2017/1129 and Directive (EU) 2019/1937)
(hereinafter referred to as "ECSP Regulation",
"ECSPR", and the
