Authorized replace: Overview 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 offer clearer regulatory necessities, and to strengthen the transparency and accountability of crowdfunding actions. The evaluation will even concentrate on 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 the particular contents of the longer term 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 businesses; and
  • enforcement preparations.

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

Fairness crowdfunding: Fairness crowdfunding is the web providing of shares in a non-public firm to a gaggle of individuals for funding.

Peer-to-peer lending: People acquire loans immediately from different people below a platform that enables people to supply one another and deal immediately 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 companies (typically whereas these items or companies are in growth) in return for funds supplied by contributors.

The complete 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.

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