crowdfunding laws

Crowdfunding laws regulate how individuals and businesses raise money from many people online, ensuring transparency and protecting investors. These laws require platforms to register and disclose risks, limit how much certain investors can contribute, and set rules for truthful information about the project or product. They aim to prevent fraud and ensure that both fundraisers and contributors understand their rights and responsibilities. While rules vary by country and type of crowdfunding (e.g., donation-based, reward-based, investment), overall, these regulations foster a safe environment for raising capital through online communities.