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 evaluate is to offer clearer regulatory necessities, and to strengthen the transparency and accountability of crowdfunding actions. The evaluate may even give attention to strategies to stop fraudulent crowdfunding actions for probably unlawful functions. The evaluate will embrace 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 several types of crowdfunding actions;
• software, registration, disclosure and account auditing necessities;
• the function of regulatory businesses; and
• enforcement preparations.

The evaluate will handle all 4 widespread varieties of on-line crowdfunding actions, being:

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

Peer-to-peer lending: People get hold of loans immediately from different people below a platform that permits people to supply one another and deal immediately with out 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 companies (usually whereas these items or companies are in improvement) in return for funds supplied by contributors.

The complete query and response by the Secretary for Monetary Providers and the Treasury relating to the proposal evaluate and public session on crowdfunding is out there right here.