Study On The Legal Risk And Prevention Of Crowdfunding In China

As a new kind of Internet financial mode, crowdfunding appears later, while its scale and influence in the constantly expanding, many countries and regions have this new financing model. After crowdfunding appears in China, under the action of the double factors that small enterprises finance difficultly and private capital surplus is lack of effective investment channels. The development of Chinese crowdfunding industry develop is fast and crowdfunding has pushed the construction of multi-level capital market of our country.It is welcome that Chinese crowdfunding industry has a great achievement, while new situations and problems are also appearing that can not be ignored. Legal barriers not only severely limits the development of Chinese crowdfunding industry, but also makes huge legal risk faced by the participants of crowdfunding. As the laws and regulations about crowdfunding are unsound, the legitimacy of c rowdfunding has always been questioned. Especially under the background of the national standard financial supervision and the "practice first, legal lag", the shadow of illegal fund-raising has been associated with the raise of the mode of development, crowdfunding activities were often severely hit by regulators. Besides, crowdfunding activities are usually associated with a high incidence of fraud and defaults,which make the social public against to this new kind of Internet financial mode, By contrast, Europe and the United States and other developed countries have set up a special legal norms to regulate crowdfunding. On the basis of the advanced experience from Europe and the United States, and considering the actual situation in our country, this paper puts forward the following countermeasures. We should build the construction of legal supervision about unequity-based crowdfunding, including the distinction brtween the unequity-based crowdfunding and illegal fund-raising, making the regulatory agencies clear, setting the access and exit mechanism about the platform of crowdfunding and building the industry self-regulation mechanism. And we should also establish and improve the legal system of equity-based crowdfunding, modifying the qualitative about equity-based crowdfunding in the administrative measures, reduce investment threshold and strengthen information disclosure.