Harmonizing potential of equity-based crowdfunding regulation

Abstract

Equity-based crowdfunding shows promising potential for funding the micro, small and medium sized enterprises. So far, only several countries have adopted a specific regulation of crowdfunding, while there is no crowdfunding-specific regulation (harmonization) on the EU level. As we already observe diverging tendencies of the crowdfunding market and its regulation in respective member states, there seems to be an untapped potential of harmonizing certain aspects of capital markets law, such as Prospectus Directive. We will assess the needs of the crowdfunding market and reflect them against the Prospectus Directive and its implementation in selected member states. The assessment serves as a basis for discussion on harmonization potential.