Eternity Law International News European Union crowdfunding platforms

European Union crowdfunding platforms

Published:
March 19, 2020

CROUDFUNDING PLATFORMS IN THE EUROPEAN UNION

European countries have decided to increase the attractiveness of their territories for startups and introduce new crowdfunding rules. Crowdfunding platforms in the European Union will gain access to customers of the entire European Union

The executive body presented an action plan aimed at improving the latest technology. These include: Blockchain, AI (artificial intelligence) and various cloud storage.

The problem with crowdfunding in Europe today is that there is not a single general law. This means that all startups operate within the framework of national laws, which greatly slows down their development.

The new law will make markets safer and more affordable for new companies. It provides some rules for crowdfunding, thanks to which platforms can operate throughout the EU.

With the help of this law, operators will have the opportunity to work, subject to a single law.

The vice president of financial stability, Valdis Dombrovskis, noted that licensing crowdfunding platforms will help increase their number in Europe. It will also be possible to invest in companies, which will open up great opportunities for entrepreneurs and sponsors.

UK crowdfunding platforms are looking for ways to get a license in the EU after Britain leaves the EU

This decision is not unimportant, since England will soon leave the EU bloc and remain with its law on licensing crowdfunding. Today it is becoming clear that English financial companies will not be able to provide customer service from Europe.

UK licensed financial service providers are already looking for new ways to continue to have access to the European market. Without it, they will lose up to 500 million potential customers, which will entail financial losses.

The main direction for crowdfunding in Europe is Lithuania. Due to its developed infrastructure.

Once approved, the decree will enable platforms to make an application for an EU brand name under unified legislation. Thanks to this, it will be possible to offer their services directly.

All platform investors will be protected thanks to clear disclosure rules. Rules are also provided for in the areas of risk management and supervision.

Crowdfunding provides access to financial injections for startups and small businesses. Companies place their business plan on an online platform and apply for sponsorship or investment. Investors, in turn, profit from profitable projects.

Thanks to strict rules in EU law, it is difficult for many crowdfunding platforms to expand their activities. Because of this, the development of such a business in Europe is problematic. The main obstacle is the high cost of maintaining the platform.

Specialists of Eternity Law International will provide you with professional services in full legal support, selection of documents and we will provide advice on this issue.

You could be interested

Cryptocurrency trading in Poland

The Polish crypto market does not have a comprehensive regulative system, although it is interpreted by the law. Hence, the digital currency does not belong to the domain of the financial market within the interpretation of Polish law, so basically it is not in the remit of a specific, traditional financial regulation. Though the Polish...

Company formation for non-residents in Canada. Ontario General Partnership registration

 Ontario General Partnership registration with the participation of Non-Resident Partners. The Ontario General Partnership is a form of business registration in Canada that combines the reputational benefits of Canadian jurisdiction with the offshore component, making it beneficial to Non-Resident Partners. The main aspects of this business structure include: Canada’s authoritative onshore jurisdiction, whitelisted by the...

Citizenship by Territorial Origin

Citizenship by territorial origin. The Ukrainian law “On Citizenship” in Article 8 states that a person has the opportunity to become a citizen of Ukraine if: person, close relative: parents, grandfather, grandmother, sister, brother, any of the children, grandchildren were born before 08.24.1991. Or had a permanent residence permit on the territory of Ukraine according...

Gaming License on Isle of Man

Privileges a gaming license on Isle of Man offers are quite extensive. Holders of this permission can enjoy all excellences that are legally accessible to them. Among others, we can note an efficiently built tax system, a simple application, a comfortable business sphere and a highly skilled workforce there. Most of its GDP comes from...

Registration of Additional Liability Company

The companies with additional liability are formed in the event of a combination of equity capital by the founders, the number of which is limited. A distinctive feature of such an enterprise is the subsidiary liability of the founders of the ALC for the approved obligations of the established enterprise. Its size is clearly fixed...

Criminal lawyer

Eternity Law provides a wide range of legal services for all categories of cases. Our team consists of educated and experienced professionals of various fields. The main task of a lawyer is to trace circumstances that will justify the defendant or mitigate his/her possible liability. Eternity’s ticket to success is the professionalism of its employees...
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof

Kyiv

Baseina street, 7

London

Grosvenor Gardens, 52

New York

1178 Broadway, 3rd Floor #3353 New York, NY 10001

Vilnius

Gediminas Avenue, 44A

Tallinn

Kesklinna linnaosa, Tuukri 19

Edinburgh

Lochrin Square, 1

Nicosia

Jacovides Tower, 5 floor

Riga

Esplanade, 7 floor

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard

Sydney

20 Martin Place

Porto

2609 Avenida da Boavista

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7