Crowdfunding and national security: Hong Kong groups say government did not consult enough on proposal to tighten rules
- Groups relying on donations worry proposed rules will put off donors, threaten their survival
- Some want consultation period extended, but authorities say they are already looking at submissions
Hong Kong’s financial authorities have been accused of downplaying the public consultation over a contentious plan to regulate crowdfunding, with some concern groups warning that the proposed rules threatened their survival.
The controversy is over a proposal unveiled last December by the Financial Services and Treasury Bureau that would require anyone planning to collect donations from individuals and others – online or offline – to apply to a new Crowdfunding Affairs Office for approval to proceed.
Law enforcement agencies will be empowered to ban or stop any unapproved or illegal crowdfunding activity and prosecute not only the organisers but also those who donate.
Several concern groups representing patients with various medical conditions joined non-governmental organisations and the city’s leading opposition party in accusing the bureau of making only a limited effort to engage the public on the proposed new rules.
They also demanded an extension to the three-month consultation exercise, which ended on March 20.
The proposal followed high-profile crackdowns on crowdfunding initiatives to support those charged over their roles in the 2019 anti-government protests. One of them, the 612 Humanitarian Relief Fund, offered more than HK$243 million (US$31 million) it raised in donations to individuals facing criminal prosecution or financial strain in the wake of the unrest.
Under the 25-page proposal, those planning a crowdfunding campaign must provide their personal data and information about the local bank account to be used for the drive and the beneficiaries. They must also pledge that the drive will not involve any activity that jeopardises national security.