Should crowdfunding be regulated? Why or why not?
There will be people who will abuse the platform. Regulations are needed to ensure the money is used for its purpose.
Catherine Chia S. H.
I've backed over 900 Kickstarter projects. Crowdfunding platforms like Kickstarter and Indiegogo take no responsibility whatsoever even when the project is a blatant scam. In only maybe three projects has there been successful legal action forcing the creators to respond. Caveat emptor.
Only regulations to make sure funds flow to the intended purpose, which must be stated clearly from the outset. They could be asking for funds for a stupid idea but if people are willing to donate then they should not be stopped. All within legal boundaries of course.
Politicians all over the world would raise funds for (reasons like money laundering, to promote frivolous litigation, to manipulate domestic politics and undermine political sovereignty). Are we going to regulate that as well?