The Legal Risk And The Regulation Of Equity Crowdfunding In China

Based on the legal relationship subjects of equity-based crowdfunding,this paper analyzes the main legal risks faced by equity-based crowdfunding in China’s practice,and draws on the overseas advanced legislative and regulatory experience to put forward Suggestions for the sound and orderly development of equity-based crowdfunding in China.Specifically,this article from four parts to our country real right legal risk and the prevention question has carried on the discussion.The first part is an overview of equity-based crowdfunding.Its concept and characteristics are briefly introduced: small amount,openness,high risk,etc.The new financing method of equity-based crowdfunding has solved the problem of difficult and expensive financing for small,medium and micro enterprises and start-ups,stimulated the enthusiasm for innovation and entrepreneurship of the public to a certain extent,and promoted the improvement of China’s multi-level capital market.The second part analyzes the legal risks faced by the three main parties of equity-based crowdfunding.Due to the imperfect laws,regulations and regulatory measures,in the practice of equity-based crowdfunding,financing parties are faced with the risk of illegal issuance of securities and infringement of intellectual property rights.Investors are faced with the risk of infringement of their right to know and fraud.Crowdfunding platforms are faced with the risks of unclear legal status,vague rights and obligations,and lax information disclosure.In the third part,the author analyzes the relevant legislation and regulatory measures in the United States,the United Kingdom and Japan one by one,and the inspiration for the development of equity-based crowdfunding in China is to strengthen the strict supervision of financing parties,improve the protection mechanism for investors and strictly regulate the behavior of crowdfunding platforms.In the last part,in the process of legal risk prevention of equity-based crowdfunding in our country,small financing issuing exemption is implemented for the financing party to lock the equity of the original shareholder for a certain period.Constantly improve the protection mechanism for investors,set investment caps and carry out risk education;Crowdfunding platforms should be given legal status,their rights and obligations should be clarified,the information disclosure system should be improved,and the third-party fund custody mechanism should be introduced.The author believes that it is only a matter of time before the legal risk prevention system in the field of equity-based crowdfunding is improved.Equity-based crowd-funding mode can be legalized and legalized as soon as possible,so as to promote the vigorous development of China’s capital market.