Authorized replace: Evaluate and public session on crowdfunding in 2022

On this snapshot authorized replace, we report that on 25 Might 2022, in a written reply by Mr. Christopher Hui, the Secretary for Monetary Providers 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 target of the assessment is to offer clearer regulatory necessities, and to strengthen the transparency and accountability of crowdfunding actions. The assessment may even concentrate on strategies to forestall fraudulent crowdfunding actions for probably unlawful functions. The assessment will embrace a public session to be accomplished inside 2022 to hunt suggestions on particular contents of the long run regulatory framework, together with:

  • the scope of crowdfunding actions to be regulated;
  • regulatory necessities for several types of crowdfunding actions;
  • utility, registration, disclosure and account auditing necessities;
  • the position of regulatory companies; and
  • enforcement preparations.

The assessment will deal with all 4 frequent kinds of on-line crowdfunding actions, being:

Fairness crowdfunding: Fairness crowdfunding is the web providing of shares in a non-public firm to a gaggle of individuals for funding.

Peer-to-peer lending: People receive loans immediately from different people below a platform that permits the people to supply one another and deal immediately and not using a financial institution to intermediate.

Donation-based crowdfunding: Funds are raised for making donations to charitable actions or different causes.

Reward or pre-sale-based crowdfunding: Fundraisers present items or companies (usually whereas these items or companies are in improvement) in return for funds offered by contributors.

The complete query and response by the Secretary for Monetary Providers and the Treasury relating to the proposal assessment and public session on crowdfunding is accessible right here.