Crowdfunding platforms: welcome to the single European standard!

The introduction of ECSP status is an important step forward in facilitating the development of cross-border operations. On 18 December 2019, the European institutions (European Parliament and European Council) finally agreed to establish a single regulation governing equity financing platforms dedicated to loans and investment. Below are a few details...

A new European status: ECSP status

This new single regime provides for the creation of a status for ‘European crowdfunding service providers’ or ECSP. Granted by application to the AMF in France, this will make it possible for providers to offer services throughout the EU without additional specific authorisation.

The forthcoming regulation will provide a single, standard legal framework based on shared criteria, that permits crowdfunding platforms to operate outside the country in which they are located, thus facilitating cross-border financing of companies, which is still rare today.