ABSTRACT
In this chapter, the author examines how a crypto-market based on the blockchain technology can be used to facilitate a crowdfunding platform and focuses on the aspect of investor protection. The EU Crowdfunding Regulation is used as a benchmark to identify legal risks and further opportunities for innovation. To this end, the author discusses the investor-focused objectives of crowdfunding, and the role that technology can play in realising these objectives. He then considers the meaning of investor protection within the scope of the Crowdfunding Regulation, and identifies areas where the current regime might be extended in the future. He also discusses the categorisation of investors and the relevance thereof for investor protection. Major provisions pertinent to investor protection are subsequently discussed, including the information to be provided to clients, default rate disclosure, the entry knowledge test and the simulation of ability to bear loss, the pre-contractual reflection period and the key investment information sheet. The aim is to assess to what extent do the provisions of the Regulation provide effective protection to investors while at the same time giving entrepreneurs access to finance and investors access to the shared economy.
Keywords: crowdfunding, blockchain, EU Regulation, investor protection, access to finance, shared economy
