Legal aspects of crowdfunding

Advances in technology have led to significant changes in the financial sector as it has affected many sectors. Great progress has been made in the field of Financial Technology and alternative solutions to traditional Financial Technology institutions have been developed. One of these innovations is crowdfunding. This stands out as a new, alternative and open to development financing method. A modern way to bring an idea to life and realize projects is with the help of communities and through specialized platforms. There are various types of crowdfunding. Donation-based crowdfunding provides funding through donations to a specific project. Reward-based crowdfunding involves involving contributors in the project by providing them with symbolic and/or special rewards. Debt-based crowdfunding is the provision of capital in exchange for lending or interest. Share-based crowdfunding offers the opportunity to involve investors in the project. Apart from traditional financing methods, these methods provide financing independently from banks, angel investors and venture capitalists. As an innovative financing method, crowdfunding requires these transactions to be carried out through platforms. Legal systems bind the legal infrastructure of these platforms to certain conditions and rules. Therefore, it is very important to analyze the types of crowdfunding and the basis of platforms from a legal perspective. It will also be necessary to shed light on how the crowdfunding system and platforms work internationally in a way that is compatible with the regulations of countries and potential compliance issues. As an innovative and alternative financing method, crowdfunding brings with it regulatory challenges. At the intersection of law and innovation, it is important to outline the legal framework for this next-generation financing method, emphasizing its advantages and mitigating its disadvantages. This study aims to engage in this enlightening endeavor.