Authorized replace: Assessment and public session on crowdfunding in 2022

On this snapshot authorized replace, we report that on 25 Could 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 evaluation is to supply clearer regulatory necessities, and to strengthen the transparency and accountability of crowdfunding actions. The evaluation may even deal with strategies to stop fraudulent crowdfunding actions for doubtlessly unlawful functions. The evaluation will embody 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 businesses; and
  • enforcement preparations.

The evaluation will tackle all 4 widespread forms of on-line crowdfunding actions, being:

Fairness crowdfunding: Fairness crowdfunding is the web providing of shares in a personal firm to a bunch of individuals for funding.

Peer-to-peer lending: People get hold of loans instantly from different people below a platform that permits the people to supply one another and deal instantly with no 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 providers (typically whereas these items or providers 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 evaluation and public session on crowdfunding is accessible right here.