Authorized replace: Overview 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 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 forestall fraudulent crowdfunding actions for probably unlawful functions. The evaluation will embody a public session to be accomplished inside 2022 to hunt suggestions on the precise 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 businesses; and
  • enforcement preparations.

The evaluation will handle all 4 widespread kinds 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 enables people to supply one another and deal instantly and not using 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 providers (typically whereas these items or providers are in growth) in return for funds supplied by contributors.

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