The Hong Kong government is seeking feedback firm the public for the next three months until 20 March 2023 on its proposal to enhance the regulation of crowdfunding activities.

The Financial Services & the Treasury Bureau has published a consultation paper which sets out various recommendations on enhancing the transparency and accountability of crowdfunding activities.

This includes 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 also 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.