Crowdfunding has become one of the main sources of funding for start-ups and, for a prolonged period of time, it has existed without being formally regulated. Consequently, along with the benefit of raising large amounts of money in a relatively short period of time came the growing risk of scams, raising justified concerns regarding the overall usefulness of crowdfunding.
On 7 October 2020, the European Parliament and the Council of the European Union adopted Regulation (EU) 2020/1503 on European crowdfunding service providers for business, and amending Regulation (EU) 2017/1129 and Directive (EU) 2019/1937.
In Romania, the Parliament issued a draft of the law implementing the Regulation, which has yet to be voted upon, but might well be adopted in the near future. Implicitly, crowdfunding is definitely a hot topic and more interesting legal facts about this topic may be read by opening this article prepared by our Romanian team.