(1)

According to Article 48(1) of Regulation (EU) 2020/1503, crowdfunding service providers that have been authorised under national law before 10 November 2021 may continue to offer crowdfunding services in accordance with that national law until 10 November 2022. That transitional period was introduced to provide sufficient time for crowdfunding service providers already operating to adapt their business activities to the new legal regime and to have sufficient time to apply for an authorisation thereunder, and for competent authorities to gather sufficient information and resources to ensure a transition without market disruption.

(2)

Article 48(3) of Regulation (EU) 2020/1503 requires the Commission to assess the application of Regulation (EU) 2020/1503 to crowdfunding service providers that provide crowdfunding services only on a national basis and the impact of that Regulation on the development of national crowdfunding markets and on access to finance. On the basis of that assessment, the Commission may extend the transitional period referred to in Article 48(1) of that Regulation once, by a 12-month period.

(3)

Following its assessment, which considered the technical advice prepared by ESMA and received on 19 May 2022, the Commission concluded that the extension of the transitional period by 12 months is necessary to avoid disruptions in large national crowdfunding markets. The disruption would be caused by the inability of certain competent authorities to complete authorisation procedures by 10 November 2022 and by the inability for crowdfunding platforms operating under national law to adapt to a more comprehensive framework in time.

(4)

Due to the high risk of market disruptions, it is thus appropriate to extend the transitional period referred to in Article 48(1) of Regulation (EU) 2020/1503 by 12 months, until 10 November 2023, to allow crowdfunding platforms operating under national law and competent authorities sufficient time to adapt to the new regime.

(5)

In order for the existing transitional period to be extended prior to its expiry or as soon as possible after its expiry, this Regulation should enter into force as a matter of urgency and be applicable no later than 11 November 2022.