On this snapshot approved change, we report that on 25 May 2022, in a written reply by Mr. Christopher Hui, the Secretary for Financial Suppliers and the Treasury, to Legislative Council questions on crowdfunding, Mr. Hui confirmed that the Hong Kong Authorities is reviewing the regulation of crowdfunding in Hong Kong.
The goal of the evaluation is to supply clearer regulatory requirements, and to strengthen the transparency and accountability of crowdfunding actions. The evaluation might even think about methods to forestall fraudulent crowdfunding actions for most likely illegal features. The evaluation will embrace a public session to be completed inside 2022 to hunt options on specific contents of the long term regulatory framework, along with:
- the scope of crowdfunding actions to be regulated;
- regulatory requirements for a number of varieties of crowdfunding actions;
- utility, registration, disclosure and account auditing requirements;
- the place of regulatory firms; and
- enforcement preparations.
The evaluation will cope with all 4 frequent sorts of on-line crowdfunding actions, being:
Equity crowdfunding: Equity crowdfunding is the online offering of shares in a private agency to a gaggle of people for funding.
Peer-to-peer lending: Individuals obtain loans instantly from completely different individuals under a platform that allows the individuals to produce each other and deal instantly and never utilizing a monetary establishment to intermediate.
Donation-based crowdfunding: Funds are raised for making donations to charitable actions or completely different causes.
Reward or pre-sale-based crowdfunding: Fundraisers current gadgets or firms (often whereas this stuff or firms are in enchancment) in return for funds supplied by contributors.
The whole question and response by the Secretary for Financial Suppliers and the Treasury referring to the proposal evaluation and public session on crowdfunding is accessible proper right here.