EU Lawmakers Approve Blocwide Crowdfunding Rulebook

Law360, London (October 6, 2020, 4:00 PM BST) -- The European Parliament voted on Tuesday to bring in uniform new laws to govern crowdfunding platforms across the bloc in an effort to ensure that the alternative capital-raising strategy does not put investors at risk.

The new rules will create a uniform regime for crowdfunding that will apply to small to midsized companies seeking funds across the bloc and will protect investors from losses, Parliament said on Tuesday. They will not apply to donations-based crowdfunding, because that is not considered to be part of financial services.

"The new rules aim to help crowdfunding services to function smoothly in the internal market, and...

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