×
ECR

ECR MEP’s crowdfunding ‘passport’ plan could transform the sector

29 August 2018

ECR MEP’s crowdfunding ‘passport’ plan could transform the sector

Crowdfunding has the potential to become a much greater source of funding for small businesses in Europe, ECR MEP Ashley Fox said today as he unveiled proposals for EU-wide regulation of the sector.

Crowdfunding has the potential to become a much greater source of funding for small businesses in Europe, ECR MEP Ashley Fox said today as he unveiled proposals for EU-wide regulation of the sector.

Separate national rules currently limit cross-border activity, but Mr Fox’s report would introduce common regulations and standards that crowdfunding service providers (CSPs) could opt into.

He said: “A European passport for CSPs is important and much needed. It offers the potential to scale up crowdfunding activity across Europe, opening up early stage finance for many more enterprises without disturbing well-functioning domestic market rules.

“It would also offer protections for both investors and those seeking to raise funding.”

Different levels of regulation would apply to platforms depending on the complexity of their operations. Mr Fox proposes a threshold of €8 million on crowdfunding offers and recommends that member state authorities oversee the new pan-EU system alongside their own national rules.

The passport would also be available to platforms dealing in initial coin offerings – a type of crowdfunding which often involves cryptocurrencies and is focused on Distributed Ledger Technology-based solutions. This market is currently unregulated and open to abuse, and Mr Fox described his proposal as taking “an initial step towards imposing standards and protections for an industry that is an excellent funding stream for tech start-ups.”

Finally, the report proposed that CSPs in countries outside the EU should be able to apply for a passport, provided their national regulators are willing to apply the EU regulations in full.

Mr Fox told the European Parliament’s Economic and Monetary Affairs Committee: “I see this regime as a fantastic opportunity to export best practice. Expansion beyond the single market will not only provide greater investment to European projects but also ensure that European investors are getting the same protections when investing in third countries.”

It is hoped the report will be considered by the full parliament before the end of the year.

SHARE

ECR

OUR TWEETS

ECR Group

2 days ago

Today marks the 1st anniversary of the tragic & senseless murder of Slovak investigative journalist #JanKuciak & hi… twitter.com/i/web/status/1…

Neva SadikogluNovaky

4 days ago

Great panel today at Europe-Muslim Democracy Forum on #LiberalDemocracy & #MinorityRights looking at education, rel… twitter.com/i/web/status/1…

ECR Group

4 days ago

"② We must strive to be honest & reflect on what we mean by 'values' - are human rights a religious or universal va… twitter.com/i/web/status/1…

ECR Group

4 days ago

"⓵: I commend the #ECRgroup for putting the Europe-#Muslim World Democracy Forum together, but we must reach out to… twitter.com/i/web/status/1…

ECR Group

4 days ago

Our last speaker at today's #EMWDF event was @AdnanKifayat, Head of Global Security Ventures @Gen_Next foundation &… twitter.com/i/web/status/1…

ECR Group

4 days ago

Our last panel at today's Europe-Muslim World Democracy Forum focused on the future relation b/w Europe & #Muslim d… twitter.com/i/web/status/1…

ECR Group

4 days ago

Continued: And ③ "We must move away from the gross materialism of the past, & focus on the future, building justice… twitter.com/i/web/status/1…

ECR Group

4 days ago

🗣 Below are the 3 key take-aways from 🇲🇾 MP @niknazmi's remarks at today's #EMWDF event: ⓵ "Politicians need to r… twitter.com/i/web/status/1…

ECR Group

4 days ago

Today's panel on #security cooperation, #stability, #PeaceBuilding, and #ConflictResolution at the #EMWDF was chair… twitter.com/i/web/status/1…

ECR Group

4 days ago

Continued: 🗣 "In order to build greater stability & enhance #security cooperation we, and in particular the… twitter.com/i/web/status/1…





© 2018. All rights reserved. European Conservatives and Reformists Group