On this snapshot permitted trade, 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 objective of the analysis is to supply clearer regulatory necessities, and to strengthen the transparency and accountability of crowdfunding actions. The analysis will even give consideration to strategies to forestall fraudulent crowdfunding actions for most likely unlawful capabilities. The analysis will embrace a public session to be accomplished inside 2022 to hunt choices on express contents of the long run regulatory framework, together with:
- the scope of crowdfunding actions to be regulated;
- regulatory necessities for a variety of kinds of crowdfunding actions;
- software program program, registration, disclosure and account auditing necessities;
- the place of regulatory companies; and
- enforcement preparations.
The analysis will handle all 4 frequent kinds of on-line crowdfunding actions, being:
Fairness crowdfunding: Fairness crowdfunding is the web providing of shares in a private company to a bunch of individuals for funding.
Peer-to-peer lending: People buy loans straight from completely completely different people below a platform that permits the people to supply one another and deal straight and by no means using a monetary establishment to intermediate.
Donation-based crowdfunding: Funds are raised for making donations to charitable actions or completely completely different causes.
Reward or pre-sale-based crowdfunding: Fundraisers present devices or suppliers (usually whereas these items or suppliers are in enchancment) in return for funds offered by contributors.
The complete query and response by the Secretary for Monetary Companies and the Treasury concerning the proposal analysis and public session on crowdfunding is accessible correct proper right here.