Authorized replace: Evaluation 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 overview is to supply clearer regulatory necessities, and to strengthen the transparency and accountability of crowdfunding actions. The overview may even deal with strategies to stop fraudulent crowdfunding actions for doubtlessly unlawful functions. The overview will embrace 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 companies; and
- enforcement preparations.
The overview will deal with all 4 widespread forms of on-line crowdfunding actions, being:
Fairness crowdfunding: Fairness crowdfunding is the net providing of shares in a personal firm to a bunch of individuals for funding.
Peer-to-peer lending: People acquire loans immediately from different people below a platform that enables the people to supply one another and deal immediately with out 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 (usually whereas these items or companies are in growth) in return for funds supplied by contributors.
The total query and response by the Secretary for Monetary Companies and the Treasury concerning the proposal overview and public session on crowdfunding is offered right here.