ONLINE CROWDFUNDING RULES MULLED

The Government will put forward regulatory recommendations on four common types of online crowdfunding activities for public consultation later this year after it completes a review of the regulation of crowdfunding.

Secretary for Financial Services & the Treasury Christopher Hui told legislators today that the review aims to provide clearer regulatory requirements and to strengthen the transparency and accountability of crowdfunding activities, so as to prevent illegal acts and protect public interests.

He said equity crowdfunding, peer-to-peer lending, donation-based crowdfunding, and reward or pre-sale-based crowdfunding will fall under the scope of the Government’s review.

He pointed out that by donation-based crowdfunding, funds are raised for making donations to charitable activities or other causes such as making donations for political activities.

Meanwhile, through reward or pre-sale-based crowdfunding, fundraisers provide goods or services in return for funds provided by contributors.

Mr Hui said the Government will put forward corresponding regulatory recommendations in the public consultation later this year in order to avoid people making use of fraudulent crowdfunding activities for potentially illegal purposes.

The public consultation will cover specific contents of the future regulatory framework, from the scope of crowdfunding activities to be regulated to enforcement arrangement, he added.

---

PREVIOUSNEXT