What Is Crowdfunding?

INTERNATIONAL ORGANIZATION OF SECURITIES COMMISSION
CROWDFUNDING – A GROWING INDUSTRY
Abstract –
The global economy is constantly evolving and changing. It is very crucial in times like this to adopt new policies and methods of financing. Crowdfunding is one such new growing method in the world today .therefore we will see what it really means and what is the potential scope of change that it may bring in the global financial landscape.
Table of contents –
Introduction
Advantages and disadvantages of Crowdfunding

Introduction –
First of all , the IOSCO Research Department conducts various studies of data from places like financial centers, prominent members of the industry ,academic participants ,market participants

The problem arose when these websites stsrted accepting peopke with low vreditworthiness.then when they did not pay the re was no way for them to impose sanctions and so they developed new rules and programmes to reduce the chances of someone defaulting.
• Uncertainty of platform –
Sometimes the platform the facilitates the funding itself shuts down temporarily or permanently. This causes serious losses to the people who invested because the platform that had to do the collection of the money , no longer exits.
• Fraud

The usual physical parameters that help in security and vverifying authenticity are not as efficeinet and proper along with the fact that information is not available freely and so the risk of fraud is always prenset. This is always cupled with the fact

Iosco and its principle with relation to financial Crowdfunding –
Ioscos main principle and standards are set to impose regulation om the securities market. Its objective is to provide proper plans and solutions to the securities market in times of crisis and to conduct research and study in order to provide new methods and principles to help identify and protect from potential risks. These principles can be applied to the above mentioned types of Financial Return Crowdfunding and can help us understand these new methods of lending that are a growing industry in todays age.
The principles of the iosco that aere relevant here are –
1. Principles relationg to the regulator-
Principle 6 says that “regulator should have or contribute to a process to monitor, mitigate and manage systemic risk, appropriate to its mandate.”
Principle 7 says the “regulator should have or contribute to a process to review the perimeter of regulation