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 overview is to supply clearer regulatory necessities, and to strengthen the transparency and accountability of crowdfunding actions. The overview may also give attention to strategies to forestall fraudulent crowdfunding actions for doubtlessly unlawful functions. The overview will embrace a public session to be accomplished inside 2022 to hunt suggestions on the 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;
  • software, registration, disclosure and account auditing necessities;
  • the function of regulatory companies; and
  • enforcement preparations.

The overview 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 get hold of loans straight from different people below a platform that enables people to supply one another and deal straight 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 supplied by contributors.

The total query and response by the Secretary for Monetary Providers and the Treasury relating to the proposal overview and public session on crowdfunding is offered right here.