Karsten Wenzlaff of the German Crowdfunding Association Provides Insight into Harmonization of Pan-European Crowdfunding Rules
Last year, the
European Unionapproved pan-European crowdfunding rules that will apply to all member states thus finally offering a harmonized approach to online capital formation. Crowdfunding advocates and European platforms had long recognized the unnecessary friction intrinsic to raising capital based on national regulations instead of across the EU. The final legislation allows issuers the ability to raise up to €5 million during a 12 month period thus representing a significant improvement to the market. Industry participants embraced the changes that took years to be approved.
Recently, the