22 October 2019
The first negotiations on new rules covering the EU’s crowdfunding sector took place today in Strasbourg.
ECR Group Slovakian MEP Eugen Jurzyca is leading the talks on behalf of the Parliament and is hoping to find a balanced agreement before the end of the year.
The crowdfunding has provided a new way of lending to innovative businesses sector in recent years. Therefore, it has been important for the legislators to try to put in place a balanced framework that continues to allow the market to work freely while also protecting investors.
Central to the talks will be the question whether to establish an optional or harmonised regime for the sector and the effect this could have on cross-border activity. In addition, there are a few of unresolved issues on the scope of this legislation, role of national authorities and the level of involvement of the European Securities and Markets Authority (ESMA).
Speaking ahead of the talks, Mr Jurzyca said:
“This new legislation is an opportunity to further improve the functioning of capital markets in the EU – helping us move towards a genuine Capital Markets Union.”
“As legislators, we should do everything within our capacities to further develop crowdfunding markets across the European Union. We need to find the right level of investor protection, the appropriate definitions for different forms of crowdfunding and setting the correct threshold for projects.”
Jurzyca also pointed out that if this proposal succeeds, it could mean greater efficiency and democratization of the lending economy: “democratization, because more projects will be chosen and supported directly by people instead of public institutions.”
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