Regulation of crowdfunding platforms

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A crowdfunding platform is an online portal through which people, organisations and businesses, including business startups, can raise money through online portals (crowdfunding platforms) to finance or re-finance their activities. The term ‘crowdfunding’ applies to several internet-based business models, only some of which are regulated by the FCA and some of which are not. The types of crowdfunding that regulated in the EU and the UK are:

  1. 1

    loan-based crowdfunding: also known as ‘peer-to-peer lending’, this is where consumers lend money in return for interest

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