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EU looks to boost fintech with crowdfunding 'passports'

(Image credit: Image Credit: Jai79 / Pixabay)

The European Union is looking to promote itself as a more attractive place for start-ups by introducing new regulations around crowdfunding

EU bosses have proposed a draft law offering crowdfunding platforms bloc-wide access to customers. The current problem with crowdfunding in Europe is the fact that there are no bloc-wide laws, which means start-ups are left with national rules, which are often slowing them down.

European Union’s financial services commissioner, Valdis Dombrovskis, said such thing as an EU crowdfunding license would “help crowdfunding platforms scale up in Europe”.

“It will help them match investors and companies from all over the EU, giving more opportunities for firms and entrepreneurs to pitch their ideas to a wider base of funders,” he added.

“Instead of having to comply with different regulatory regimes, platforms will have to comply with only one set of rules, both when operating in their home market and in other EU member states,” the commission said.

Investors, on the other hand, would see benefits as well, as a legal framework would provide a certain amount of certainty and investor protection.

The UK, which is generally perceived as a top fintech hub in Europe, will be leaving the bloc next year.

Image Credit: Jai79 / Pixabay