The Financial Services & the Treasury Bureau today published a consultation paper on the proposal to enhance regulation of crowdfunding activities and launched a three-month public consultation exercise.
The consultation paper sets out various recommendations on enhancing the transparency and accountability of crowdfunding activities, which include requiring in-principle future crowdfunding activities to make an application and obtain permission before commencement; and ensuring sufficient transparency to the public during and after the conduct of crowdfunding activities.
The paper suggests setting up a Crowdfunding Affairs Office to centrally process regulatory and administrative matters related to crowdfunding activities.
The bureau said Hong Kong currently does not have a clear mechanism in regulating the increasingly prevalent online crowdfunding activities, which poses risks to public interest and safety.
It said the consultation paper proposes building a comprehensive mechanism that can strengthen public confidence to participate in lawful and proper crowdfunding activities, and prevent lawbreakers from engaging in activities that are fraudulent, jeopardising public interest, or endangering public and national security in the name of crowdfunding.
People can submit their views to the bureau by post to 15/F, Queensway Government Offices, 66 Queensway, Hong Kong, send a fax to 2869 4195 or email email@example.com on or before March 20, 2023.
Click here for the consultation paper.