REGULATORY ASPECTS OF CROWDFUNDING PLATFORMS AS AN EMERGING PART OF ALTERNATE FINANCE MARKET IN EUROPE
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Abstract
The article is devoted to the Regulatory changes in crowdfunding market in the EU, associated with introduction of the new Regulation (EU) 2020/1503, applied from November 10, 2021, that introduced uniform and centralized supervision over the crowdfunding platforms, posing new obligations, financial commitments, and challenges for the existing and operating market players, that by introducing this regulation de facto have been equated with financial institutions. The paper reveals the marked background and underlying factors, causing the necessity of this regulation; it also outlines, from one hand, the benefits pertaining to transparency and investor protection it introduces, but, from the other hand, the main hurdles the crowdfunding platforms faced, that made ESMA initiate the prolongation of transition period twice, totaling one year. In the conclusion, the author provides it opinion on the prospective changes in the outlook and structure of crowdfunding market and its development potential in new legal environment.
How to Cite
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crowdfunding, crowdfunding platforms, lending-based and equity-based models, Regulation (EU) 2020/1503, RTS, alternate finance, ESMA, EBA, ECSP authorization
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