Review of Crowdfunding Regulations across Countries: A Systematic Review Study
Muna M. Alhammad 1 * ,
Rawan AlOthman 1,
Chekfoung Tan 2 More Detail
1 College of Business Administration, King Saud University, Riyadh, SAUDI ARABIA
2 UCL Centre for Systems Engineering, University College London, UK
* Corresponding Author
Journal of Information Systems Engineering and Management, 2021 - Volume 6 Issue 4, Article No: em0145
https://doi.org/10.21601/jisem/11395
Published Online: 02 Dec 2021
Views: 1303 | Downloads: 2927
In recent years, the financial industry is seeing rapid implementation of an increasing number of new technologies. In crowdfunding campaigns, borrowers, potential investors, and platform providers may face some issues in terms of information disclosures, selecting an appropriate threshold, and platform insolvency. However, there is insufficient research to provide a cohesive view of the regulatory framework for crowdfunding platforms. This research offers comparative and comprehensive insights through a systematic literature review (SLR) in analyzing the existing regulatory environment across countries. The results suggest the fundamental regulatory framework in supporting startups, early-stage companies, innovation and entrepreneurs, and balancing investor protections and support for businesses seeking to raise funds, particularly in protecting client’s fund, crowdfunding advertising law, fundraising and investment limit, authorization and disclosure obligations. This study contributes to providing a comprehensive understanding of crowdfunding regulatory frameworks and informing governments or policymakers in the future development or reform of crowdfunding regulation frameworks.
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