EU Looks To Pass Bloc-Wide Laws To Help Crowdfunding Efforts. European Union officials say all companies could benefit from crowdfunding bloc-wide laws.
The EU is passing new guidelines and rules about crowding, in the hopes that it brings in more startup companies. For example, a suggestion has been made on a draft law to provide customers with crowdfunding platforms bloc-wide access.
The country’s current crowdfunding issue is the lack of bloc-wide laws. This means startups have no national rules that can help them navigate the market quickly and efficiently.
Valdis Dombrovskis, financial services commissioner for the EU, said crowdfunding platforms could improve in the country if they had an EU crowdfunding license. He said it would provide them with more companies and investors to pitch ideas to, increasing their funding base.
Entrepreneurs could follow just one set of guidelines
According to the commission, passing such laws would mean entrepreneurs could follow just one set of guidelines instead of multiple ones.
Investors could see some advantages themselves. With a legal framework in place, it gives them some protection and certainty in the market.
Although many see the UK has being the top European Fintech hub, the country is set to leave the bloc in 2019.