RLP Blog

Crowdfunding in Liechtenstein 🇱🇮

The world of crowdfunding in Liechtenstein is buzzing with exciting achievements!

On March 28, 2023, the Liechtenstein government made a historic decision by adopting a report and proposing a new law to provide crowdfunding services to businesses within the European Economic Area (EEA). This groundbreaking legislation, known as the EEA-SFDG (European Economic Area Swarm Finance Delivery Act), aims to revolutionize the crowdfunding landscape by removing previous national barriers and fostering a harmonized and level playing field across the EEA.

The key objective of the EEA-SFDG is to streamline regulations and create a standardized framework for providing crowdfunding services. This will benefit both businesses seeking financing and investors looking for opportunities within the EEA.

Let's take a closer look at the implications of this significant development:

1️⃣ Harmonized Regulations

With implementing the EEA-SFDG, businesses and investors alike can expect uniform requirements for crowdfunding services. This means that irrespective of their location within the EEA. Companies will now have access to consistent regulations, making it easier for them to navigate the crowdfunding landscape and attract investments.

2️⃣ Level Playing Field

The EEA-SFDG aims to create fair competition and equal opportunities for all crowdfunding service providers. By removing previous national barriers, the law ensures that businesses and investors can seamlessly engage in cross-border crowdfunding activities.

The regulations within the EEA-SFDG cover various aspects of crowdfunding services, including

✅ the requirements for service providers,

✅ authorization processes,

✅ organizational standards,

✅ ongoing oversight,

✅ the operation of crowdfunding platforms.

The law also addresses customer protection by standardizing transparency obligations and marketing communication provisions.

Liechtenstein legislation is expected to spur innovation, encourage entrepreneurship, and facilitate access to capital for businesses of all sizes by promoting harmonization and creating a level playing field.

As the EEA-SFDG moves forward, it is anticipated that other countries within the EEA will also embrace similar regulations, further expanding the impact and reach of EEA-wide crowdfunding services.

Click on the link below to read the report on the government consultation on the law (in German)