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 Companies 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 evaluation is to supply clearer regulatory necessities, and to strengthen the transparency and accountability of crowdfunding actions. The evaluation will even deal with strategies to stop fraudulent crowdfunding actions for doubtlessly unlawful functions. The evaluation will embrace a public session to be accomplished inside 2022 to hunt suggestions on particular contents of the longer term regulatory framework, together with:

  • the scope of crowdfunding actions to be regulated;
  • regulatory necessities for various kinds of crowdfunding actions;
  • software, registration, disclosure and account auditing necessities;
  • the function of regulatory businesses; and
  • enforcement preparations.

The evaluation will tackle 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 bunch of individuals for funding.

Peer-to-peer lending: People acquire loans instantly from different people beneath a platform that permits the people to supply one another and deal instantly with out a monetary establishment 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 (typically whereas these items or companies are in improvement) in return for funds offered by contributors.

The total query and response by the Secretary for Monetary Companies and the Treasury relating to the proposal evaluation and public session on crowdfunding is on the market right here.

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