The EU Commission has published a report on the EU crowdfunding sector as part of its work on the Capital Markets Union (CMU) action plan.
The report assesses national regimes, identifies best practice, and presents the results of the Commission's monitoring of the evolution of the crowdfunding sector. The report finds that, while small, the crowdfunding market in the EU is developing rapidly, and, if properly regulated, has the potential to be a source of financing for small-to-medium enterprises (SMEs).
While EU Member States have begun to implement national frameworks to support the growth of the sector and protect investors, they are normally tailored to local markets and domestic regulatory approaches. The EU Commission believes that, as crowdfunding remains largely local, there is no strong case for an EU level framework at this time, although it plans to keep developments in the sector under review by meeting twice yearly with regulators and the sector.