RO Govt. takes steps to regulate Seedblink and other crowdfunding platforms

The Romanian ministry of finance published for public debates a bill for the regulation of crowdfunding platforms, such as Seedblink, in line with the EU Regulation on European providers of services, Bursareported.

The draft law envisages the implementation of Regulation (EU) 2020/1503 of the European Parliament and of the Council of 7 October 2020 on European providers of crowdfunding services and amending Regulation (EU) 2017/1129 and Directive (EU) 2019/1937.

The regulation is part of the action plans on the Capital Markets Union (UPC) and Fintech, with the aim of creating a regulatory framework that allows crowdfunding platforms access to the entire single market through a single authorization based on a single set of rules.

According to the project, in order to operate, the providers of crowdfunding services must be authorized by the Financial Supervision Authority (FSA).

ASF also has the power to withdraw the authorization given to a crowdfunding platform in certain situations, and may impose fines for various irregularities found.

To be authorized, a provider of participatory financing services must cumulatively meet the conditions provided in art. 12 of Regulation (EU) 2020/1503, including "the absence of criminal records in cases of breaches of domestic law in commercial matters, insolvency, financial services, anti-money laundering, fraud or those on professional liability for all natural persons involved in the administration of the potential provider of crowdfunding services and for shareholders holding 20% or more of the share capital or voting rights."

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