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 assessment is to supply clearer regulatory necessities, and to strengthen the transparency and accountability of crowdfunding actions. The assessment may even give attention to strategies to stop fraudulent crowdfunding actions for doubtlessly unlawful functions. The assessment 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 various kinds of crowdfunding actions;
- utility, registration, disclosure and account auditing necessities;
- the position of regulatory companies; and
- enforcement preparations.
The assessment will handle all 4 widespread varieties of on-line crowdfunding actions, being:
Fairness crowdfunding: Fairness crowdfunding is the net providing of shares in a non-public firm to a gaggle of individuals for funding.
Peer-to-peer lending: People acquire loans instantly from different people underneath a platform that enables the people to supply one another and deal instantly 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 (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 assessment and public session on crowdfunding is offered right here.