Position Paper Bitkom Position on European Commission’s Consultation on a Proposal for a Regulation on European Crowdfunding Service Providers (ECSP) for business
We strongly believe in the benefit of European regulation for crowdfunding services. In many European markets SMEs are traditionally underserved when it comes to accessing finance. While banks turn away from small business loans, credit platforms can connect investors and borrowers. EU-wide regulation will help to create a level playing field and allow platforms to expand within the Single Market. We believe that only a harmonised European set of rules can create robust standards for investor protection and risk management.
However, in its current form, the ESCPR does not provide an attractive licensing option for most crowdfunding service providers, in particular not for platforms domiciled in Germany. The ECSPR in its current form will not be attractive for the vast majority of the crowdlending industry, since it does not provide adequate investor protection and impedes the development of the innovative, customer-friendly products which customers expect. It also falls short in terms of customer protection and requirements for risk management and market integrity. We would like to highlight the specific issues of the current ECSPR draft in our Bitkom Position.”