New EU regulations for P2P

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P2P Investing is becoming better regulated within the EU. That is a long overdue and welcome thing from our perspective. There have been far too many cases of low quality or completely fraudulent sites being established in the past. That has impacted not just the investors who have lost money in those sites, but also the industry as a whole. 

From November of this year, all P2P sites operating in the EU will need to be licensed ‘Crowdfunding Service Providers’. There will be a public register of sites that are fully regulated. Sites will be required to comply with the relevant EU legislation, which can be found here (Regulation 2020/1503).

Below, we have listed the 8 most important ways we think these new regulations will improve the P2P industry and improve your experience as an investor. It was not possible to cover all the new rules, as the legislation is extensive and covers many areas. If you would like to learn more, Law firm Arthur Cox has also provided a good analysis of all the key requirements here.

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