Crowdfunding and DLTs: the imperative need for more clarity

Abstract

This Chapter aims to analyse the intersection between crowdfunding and distributed ledger technologies (DLTs), including crypto-assets. In particular, it focuses on the main legislative developments on digital finance in an European level, exploring the regulatory treatment potentially applicable to new technologies in crowdfunding environments, especially under the framework of the Markets in Crypto-Assets (MiCA) and DLT Pilot Regime Regulations, currently under discussion. To do so, the first section of the Chapter covers the applications of DLT in crowdfunding platforms, whereas the second section is devoted to analyse crowdfunding products and, specifically, the correlation between equity crowdfunding and security token offerings. In spite of the initiatives to update the EU regime, the authors find that there still remains gaps and mis-matches in the legislative landscape, which threatens the development of digital markets with legal uncertainty.