The European Commission has published a report Tuesday on the sector of crowdfunding in the European Union which emphasizes that there is "strong arguments" to justify the need to regulate the sector at Community level, since changes "quickly" and frames national laws that have been established with a local focus.
This study is part of the action plan launched last year by the EU executive for joining the capital market. Brussels stressed that support innovative ways "to connect savings growth and diversify sources of financing of European businesses is crucial to enhance growth and job creation."
The Commission notes that several Member States have established national legal frameworks to support the growth of this sector and ensure adequate protection for investors. Thus, Brussels points out that these schemes are consistent with the objectives and the results they seek, but are tailored to local markets and have domestic legal approaches.
Therefore, the EU executive argues that, since the crowdfunding is mainly local and is a rapidly changing sector, there is "strong arguments" to justify regulation at Community level.
In any case, Brussels has said it will continue to analyze its evolution and will meet twice a year with the authorities and stakeholders in the sector, so as to ensure that it is able to respond in time if necessary raise a convergence legal at European level to promote the development of crowdfunding or to protect investments.
The Commissioner for Financial Stability and Financial Services, Jonathan Hill, said that the EU executive is willing to support the development of models of crowdfunding "as a source of funding for entrepreneurs with bright ideas, start-ups and other SMEs."
"Our focus is to promote best practice, proper investor protection and consistency of national systems. We will continue to closely monitor the market and regulatory developments," he added.
On the other hand, the European Commission pointed out that, although still a small source of funding, crowdfunding has the potential to become a source of funding "key" for SMEs in the long run.
According to the data handled, the financing achieved through crowdfunding platforms grew from 1,600 million euros in 2014 to 4.200 billion last year, of which 4,100 were for models in which the contribution meant some kind of performance for investors.
This study is part of the action plan launched last year by the EU executive for joining the capital market. Brussels stressed that support innovative ways "to connect savings growth and diversify sources of financing of European businesses is crucial to enhance growth and job creation."
The Commission notes that several Member States have established national legal frameworks to support the growth of this sector and ensure adequate protection for investors. Thus, Brussels points out that these schemes are consistent with the objectives and the results they seek, but are tailored to local markets and have domestic legal approaches.
Therefore, the EU executive argues that, since the crowdfunding is mainly local and is a rapidly changing sector, there is "strong arguments" to justify regulation at Community level.
In any case, Brussels has said it will continue to analyze its evolution and will meet twice a year with the authorities and stakeholders in the sector, so as to ensure that it is able to respond in time if necessary raise a convergence legal at European level to promote the development of crowdfunding or to protect investments.
The Commissioner for Financial Stability and Financial Services, Jonathan Hill, said that the EU executive is willing to support the development of models of crowdfunding "as a source of funding for entrepreneurs with bright ideas, start-ups and other SMEs."
"Our focus is to promote best practice, proper investor protection and consistency of national systems. We will continue to closely monitor the market and regulatory developments," he added.
On the other hand, the European Commission pointed out that, although still a small source of funding, crowdfunding has the potential to become a source of funding "key" for SMEs in the long run.
According to the data handled, the financing achieved through crowdfunding platforms grew from 1,600 million euros in 2014 to 4.200 billion last year, of which 4,100 were for models in which the contribution meant some kind of performance for investors.
Brussels sees no need to regulate crowdfunding at Community level
![Brussels sees no need to regulate crowdfunding at Community level]()
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