Regulating Donation-Based Crowdfunding Platforms in Hong Kong: A Trust Law Framework

Abstract

<p>With the advance of technology, several crowdfunding platforms have emerged in Hong Kong to host informal public donation appeals (IPAs). Unlike charitable crowdfunding activities, these appeals focus on crowdfunding to provide relief to specific individuals or groups in need. Due to the recent emergence of online IPAs and their lack of public benefit, regulatory bodies have not paid much attention to their regulation. However, recent media coverage highlighting scandals of maladministration of donation funds in the context of IPAs has impelled regulators to establish a systemic framework to govern crowdfunding platforms that host IPAs. This article addresses two main aspects of this topic. First, it discusses the operation of crowdfunding platforms that host IPAs and the risks associated with them. Second, it explores the feasibility of utilising trust law to regulate the administration of donation funds by these crowdfunding platforms.<br></p>