A month ago, we took a close look at the draft of the new regulation for equity crowdfunding in Spain. Now, after multiple critical voices were raised, and the cease of operations of at least one of the local crowdfunding platforms, the Spanish government is reverting some of the limitations of the regulation.

Last Friday, Spain’s secretary of economy, Luis de Guindos, announced that the government would lift some of the restrictions described on the regulation’s draft for professional investors. What qualifies as professional investors is still object of debate. The initial hint is that the government plans on segregating based on either annual income or personal wealth, removing any investment limitations on equity crowdfunding to those with incomes above 100.000 euros a year.

Xavier Olivella, the president of the Spanish crowdfunding associationcomments:

Some months ago we sent a 56 page document with our proposals to the Ministry of Economy. The largest hurdle [of the regulation] was the investment limitation for all. We proposed a distinction between individual investors (with a 3.000 euros limit) and professional investors (without a limit), and that the first one could become professional depending on their activity.

Time will tell if these are the only changes, but as we stated before, the investment limitations are just the tip of the iceberg and there are other very important issues that need to dealt with before the draft turns into official regulation.

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