MAS must be creative in crafting crowdfunding rules
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THE Monetary Authority of Singapore (MAS) proposal to make equity crowdfunding a sophisticated investor-only market has drawn criticism from some industry players, who argue that the limitation goes against the very concept of raising money from a crowd.
The regulator is right to address the risk that the sale of securities poses to the investment public. But the proposed restriction poses an existential conundrum for the crowdfunding industry, which exists only because it purports to offer a pool of investors that is significantly larger than just the usual network of wealthy individuals and specialised funds.
In essence, is it still crowdfunding if there is no crowd?
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