Submit a Manuscript

Journal of Information Systems Engineering and Management

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
Full Text (PDF)
Review Article

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

Open Access
How to cite this article
APA 6th edition
In-text citation: (Alhammad et al., 2021)
Reference: Alhammad, M. M., AlOthman, R., & Tan, C. (2021). Review of Crowdfunding Regulations across Countries: A Systematic Review Study. Journal of Information Systems Engineering and Management, 6(4), em0145. https://doi.org/10.21601/jisem/11395
Vancouver
In-text citation: (1), (2), (3), etc.
Reference: Alhammad MM, AlOthman R, Tan C. Review of Crowdfunding Regulations across Countries: A Systematic Review Study. J INFORM SYSTEMS ENG. 2021;6(4):em0145. https://doi.org/10.21601/jisem/11395
AMA 10th edition
In-text citation: (1), (2), (3), etc.
Reference: Alhammad MM, AlOthman R, Tan C. Review of Crowdfunding Regulations across Countries: A Systematic Review Study. J INFORM SYSTEMS ENG. 2021;6(4), em0145. https://doi.org/10.21601/jisem/11395
Chicago
In-text citation: (Alhammad et al., 2021)
Reference: Alhammad, Muna M., Rawan AlOthman, and Chekfoung Tan. "Review of Crowdfunding Regulations across Countries: A Systematic Review Study". Journal of Information Systems Engineering and Management 2021 6 no. 4 (2021): em0145. https://doi.org/10.21601/jisem/11395
Harvard
In-text citation: (Alhammad et al., 2021)
Reference: Alhammad, M. M., AlOthman, R., and Tan, C. (2021). Review of Crowdfunding Regulations across Countries: A Systematic Review Study. Journal of Information Systems Engineering and Management, 6(4), em0145. https://doi.org/10.21601/jisem/11395
MLA
In-text citation: (Alhammad et al., 2021)
Reference: Alhammad, Muna M. et al. "Review of Crowdfunding Regulations across Countries: A Systematic Review Study". Journal of Information Systems Engineering and Management, vol. 6, no. 4, 2021, em0145. https://doi.org/10.21601/jisem/11395
ABSTRACT
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.
KEYWORDS
crowdfunding crowdlending equity crowdfunding FinTech regulatory frameworks policies systematic literature review
REFERENCES
  • Ahern, D. M. (2018). Regulatory arbitrage in a FinTech World: Devising an optimal EU regulatory response to crowdlending. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3163728
  • Ahlstrom, D., Cumming, D. J. and Vismara, S. (2018). New methods of entrepreneurial firm financing: Fintech, crowdfunding and corporate governance implications. Corporate Governance: An International Review, 26(5), 310–313. https://doi.org/10.1111/corg.12258
  • Aisyah, M. (2018). Islamic bank service quality and its impact on Indonesian customers’ satisfaction and loyalty. Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah, 10(2), 367-388. https://doi.org/10.15408/aiq.v10i2.7135
  • Al-Emran, M., Mezhuyev, V. and Kamaludin, A. (2018). Technology acceptance model in m-learning context: A systematic review. Computers & Education, 125, 389-412. https://doi.org/10.1016/j.compedu.2018.06.008
  • Chang, J.-W. (2020). The economics of crowdfunding. American Economic Journal: Microeconomics, 12(2), 46. https://doi.org/10.1257/mic.20170183
  • Chowdhury, F., Audretsch, D. B. and Belitski, M. (2019). Institutions and entrepreneurship quality. Entrepreneurship Theory and Practice, 43(1), 51-81. https://doi.org/10.1177/1042258718780431
  • COBS. (2020). FCA Handbook, government. Available at: www.handbook.fca.org.uk
  • Estrin, S., Gozman, D. and Khavul, S. (2016). Case study of the equity crowdfunding landscape in London: An entrepreneurial and regulatory perspective. https://doi.org/10.5465/ambpp.2016.13036abstract
  • Fenwick, M., McCahery, J. A. and Vermeulen, E. P. M. (2017). Fintech and the financing of entrepreneurs: From crowdfunding to marketplace lending. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2967891
  • Frydrych, D. and Kinder, T. (2015). How new is crowdfunding? The venture capital evolution without revolution – Discourse on risk capital themes and their relevance to Poland. Problemy Zarzadzania, 13(56), 177-194. https://doi.org/10.7172/1644-9584.56.11
  • Gabison, G. A. (2015). Equity crowdfunding: All regulated but not equal. DePaul Business & Commercial Law Journal, 13(3), 53. Available at: https://via.library.depaul.edu/bclj/vol13/iss3/2
  • Groshoff, D., Nguyen, A. and Urien, K. (2015). Crowdfunding 6.0: Does the SEC’s FinTech law failure reveal the agency’s true mission to protect - Solely Accredited – Investors. Ohio State Entrepreneurial Business Law Journal, 9(2), 277-321. https://doi.org/10.2139/ssrn.2483371
  • Havrylchyk, O. (2018). Regulatory framework for the loan-based crowdfunding platforms. OECD.
  • Herrera, D. (2016). Alternative finance (crowdfunding) regulation in Latin America and the Caribbean: A balancing act. Inter-American Development Bank. https://doi.org/10.18235/0000430
  • Hofmann, C. (2018). An easy start for start-ups: Crowdfunding regulation in Singapore. Berkeley Business Law Journal, 15(1), 219-267.
  • Hsueh, R.-T., Lin, K.-C., Shyu, J. Z. and Li, K.-P. (2016). Equity crowdfunding: A new social innovation-a regulatory cross-nation study. 2016 Portland International Conference on Management of Engineering and Technology (PICMET), presented at the 2016 Portland International Conference on Management of Engineering and Technology (PICMET), IEEE, Honolulu, HI, USA, pp. 1346-1350. https://doi.org/10.1109/PICMET.2016.7806539
  • Huang, T. and Zhao, Y. (2017). Revolution of securities law in the Internet Age: A review on equity crowd-funding. Computer Law & Security Review, 33(6), 802-810. https://doi.org/10.1016/j.clsr.2017.05.016
  • Ibrahim, D. M. (2016). Crowdfunding without the crowd. North Carolina Law Review, 95, 1481-1506. Available at: https://ssrn.com/abstract=2854347
  • Jagtiani, J. and Lemieux, C. (2018). Do fintech lenders penetrate areas that are underserved by traditional banks? Journal of Economics and Business, 100, 43-54. https://doi.org/10.1016/j.jeconbus.2018.03.001
  • Kabai, M. (2017). Twist and turns of crowdfunding regulation. Journal of Public Administration, Finance and Law, 11, 182-189.
  • Kitchenham, B. (2004). Procedures for performing systematic reviews. Keele University Technical Report TR/SE-0401.
  • Kitchenham, B. (2007). Guidelines for performing systematic literature reviews in software engineering. EBSE Technical Report EBSE-2007-01.
  • Kourabas, S. and Ramsay, I. (2017). Facilitating equity crowdfunding in the ASEAN Region. Association of Southeast Asian Nations (ASEAN). Available at: https://ssrn.com/abstract=3126652
  • Lee, T. and Kim, H.-W. (2015). An exploratory study on fintech industry in Korea: Crowdfunding case. 2nd International Conference on Innovative Engineering Technologies (ICIET’2015). Bangkok. https://doi.org/10.15242/IIE.E0815045
  • Lukstiņš, M. (2017). Real estate crowdfunding: Potential in Latvia. Riga Graduate School of Law. Available at: https://dspace.lu.lv/dspace/handle/7/45357
  • Macchiavello, E. (2018). Financial-return crowdfunding and regulatory approaches in the shadow banking, FinTech and collaborative finance era. European Company and Financial Law Review, 14(4), 662-722. https://doi.org/10.1515/ecfr-2017-0030
  • Maguire, M. and Delahunt, B. (2017). Doing a thematic analysis: A practical, step-by-step guide for learning and teaching scholars. All Ireland Journal of Teaching and Learning in Higher Education, 8(3), 3351-3364. Available at: http://ojs.aishe.org/index.php/aishe-j/article/view/335
  • Mamonov, S. and Malaga, R. (2018). Success factors in Title III equity crowdfunding in the United States. Electronic Commerce Research and Applications, 27, 65-73. https://doi.org/10.1016/j.elerap.2017.12.001
  • Matthew, A. (2017). Crowd-sourced equity funding: The regulatory challenges of innovative fintech and fundraising. University of Queensland Law Journal, 36(1), 41-71. https://search.informit.org/doi/10.3316/agispt.20173758
  • Milian, E. Z., Spinola, M. de M. and Carvalho, M. M. de. (2019). Fintechs: A literature review and research agenda. Electronic Commerce Research and Applications, 34, 100833. https://doi.org/10.1016/j.elerap.2019.100833
  • Mills, K. (2016). The state of small business lending: Innovation and technology and the implications for regulation. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2877201
  • Monés, A. V. (2018). Regulation of crowdlending in the European Union. Understanding the suitableness of EU legislation for crowdlending (Thesis – LL.M International Business Law), Tilburg University.
  • Ng, A. W. and Kwok, B. K. (2017). Emergence of fintech and cybersecurity in a global financial centre. Journal of Financial Regulation and Compliance, 25(4), 422-434. https://doi.org/10.1108/JFRC-01-2017-0013
  • Rau, R. (2020). Law, trust, and the development of crowdfunding. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2989056
  • Regulatory Framework for the Loan-Based Crowdfunding Platforms, OECD Economics Department Working Papers No. 1513. (2018). https://doi.org/10.1787/24ad924a-en
  • Rossi, A., Vismara, S. and Meoli, M. (2019). Voting rights delivery in investment-based crowdfunding: a cross-platform analysis. Journal of Industrial and Business Economics, 46(2), 251-281. https://doi.org/10.1007/s40812-018-0109-x
  • Sahaym, A., Datta, A. A. and Brooks, S. (2019). Crowdfunding success through social media: Going beyond entrepreneurial orientation in the context of small and medium-sized enterprises. Journal of Business Research, 125, 483-494. https://doi.org/10.1016/j.jbusres.2019.09.026
  • Schwartz, A. A. (2020). Crowdfunding issuers in the United States. Washington University Journal of Law & Policy, 61, 155.
  • Setälä, K. (2017). Crowdfunding in the banking industry: Adjusting to a digital era (Master’s thesis), Jyväskylä University.
  • Spanos, L. (2018). Complementarity and interconnection between CSR and crowdfunding: A case study in Greece. In Corporate responsibility and digital communities (pp. 29-49). Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-63480-7_3
  • Wolfe, B. and Yoo, W. (2017). Crowding out banks: Credit substitution by peer-to-peer lending. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3000593
  • Wroldsen, J. (2016). Crowdfunding investment contracts. 11 Virginia Law & Business Review, 543, 75. Available at: https://ssrn.com/abstract=2844771
LICENSE
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
All Rights Reserved © 2016-2023