The European Parliament approved new rules on 5 October 2020 that will enable crowdfunding platforms to easily provide services across the EU single market. This will widen the pool of potential investors for start-ups, innovators and small companies, as well as ensuring investors have a larger choice of projects and better protection.
Crowdfunding platforms operating in more than one EU country will have to comply with a single set of basic rules - the new regulation - instead of different rules in each country. The accompanying directive aims to broaden access to finance for small companies. The rules will apply to European crowdfunding service providers that raise up to €5 million per project per year.
