Editorial | Hong Kong crowdfunding move needs to raise hopes of legitimate parties
- Proposals must strike a balance by stamping out abuse of valuable cash tool for worthy causes and encouraging its use within city’s law
The advance of the internet and social media has made fundraising for various purposes just a simple click away. But it also leaves room for abuse.
That is why the Hong Kong government is following the footsteps of other places to regulate crowdfunding, a trend that has far-reaching implications for public interest. With proper safeguards and support, it can prove a useful and legitimate fundraising tool without going beyond the legal boundaries.
Under new proposals, all crowdfunding activities, be they online or offline, are to be pre-approved by a new body regardless of their purpose. Vetting will consider factors such as the reputation and reliability of the applicant, the purpose of crowdfunding and its scale, as well as public interest, public safety and national security.
The organiser will disclose its objectives and arrangements, use local bank accounts and keep proper records of fund movements. Law enforcement bodies will also be empowered to stop unlawful activities and apply to the courts to confiscate properties.
Compared to the current situation where there is practically little control over appeals for donations for a particular course or investing in business start-ups, the proposal may sound sweeping. But for a city emerging from political turmoil fuelled by the power of the people and the internet, nothing can be taken for granted.
