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
