The European Crowdfunding Network released today a Review of Crowdfunding Regulation – Interpretations of existing regulation concerning Crowdfunding in Europe, North America and Israel (the Report).
The Report discusses Crowdfunding regimes in 29 countries including Canada and the United States. It is the first ever compilation of its kind with authors from various law firms around the world who discuss the types of Crowdfunding platforms and current and proposed equity Crowdfunding legislation in each country.
I am honoured to have been asked to participate as an author in this project and refer readers to page 32 of the Report which discusses equity Crowdfunding in Canada.
The Report was commissioned in response to the rise of Crowdfunding over the past decade which, as the Report states, “…… is a result of the on-going digitalisation of processes and communication in our society, with easy access to high-speed internet and digital devices. But Crowdfunding has recently been moved to the forefront in the discussion on access to finance. This is a result of the economic crisis and the associated market failures of the incumbent financial services industry, which provides financing to small- and medium-sized enterprises (SMEs).”
The ECN hopes that the Report will be a key tool for regulators across Europe and North America, for entrepreneurs, investors and any other interested stakeholder that would like to take part in shaping the future of Crowdfunding.
Currently, both Ontario and Saskatchewan have published specific proposals for an equity Crowdfunding framework while other members of the Canadian Securities Administrators are also looking at how securities can be sold over the internet under existing securities law.
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