They will also work with the European Commission to make it aware of the new standards.
Platforms involved in the group will need to support investor safety.
“The regulation will provide security to investors and increase the trust in the sector,” the BFA said.
“Higher standards and requirements will guarantee the platforms’ stability during crises.
“Our mutual interest is to help our current and future investors in recognising the scrupulous market players and properly allocating their assets.”
The European Parliament has adopted text on cross-border crowdfunding rules agreed last July by the European Capital Markets Union (ECMU).
The rules are due to be implemented this year.
The Five Biggest Crowdfunding Stories of 2020
December 29, 2020 @ 9:52 pm By JD Alois
Online capital formation has emerged as an effective path for private companies to raise much-needed growth capital fueling innovation and creating jobs. Once the realm of VCs and angel investors only, investment crowdfunding now enables retail investors to access promising young firms at an early stage. Just like more traditional venture funding, many of these companies never generate outsized returns but some do driving wealth for investors.
But while this sector of Fintech is maturing, most platforms have not turned the corner on profitability or perhaps a better term –