Research On The Legal Risk And Prevention Strategy Of Equity-based Crowdfunding

Equity-based crowdfunding,as a new style of financial intermediary,is developing rapidly in the internet of finance boom.Its operational mode is intermediate between public offering and private offering by making the financiers have comprehensive contact with the investors.Thus it make improvements in the financing efficiency and make the cost of trading decrease dramatically.But as for the moment,there are no specific or clear regulations on equity-based crowdfunding.On the other hand,the relevant risk cannot be ignored,it will affect participants 'interests.Firstly,this article introduces the definition,history and characteristi,then this article analyses four basic legal relationships of equity-based crowdfunding: the incestment and finacing legal relationship,the intermediary legal relationship,the mandate relationship with the third comparison payment platform,and the legal relationship between investors.Secondly,this article gives a detailed analysis of the core of legal risks:illegal fund-raising risk caused by substantive law barriers,intellectual property right risk caused by the lack of creative projection system,credit risk caused by information asymmetry,and equity-based crowdfunding caused by the project sponsor circumvent the law.Finally,this article describes the US Jumpstart Our Business Startups Act and the British “crowdfunding regulatory rules” in the equity-based crowdfunding relevant legal regulations,as well as other effective legal regulations measures related aspects for our equity-based crowdfunding relevant legal regulation constructed to provide effective reference,than specific recommendations are made from aspects of improvement for the legal risks in equity-based crowdfunding.Strengthening the supervision of equity-based crowdfunding platform and strengthening the protection of investors by amending the existing law.