Criminal Regulation Of Equity Crowdfunding And Its Limits

Equity crowdfunding is an important part of Internet finance.Its emergence and development benefited from Internet technology,which promoted China’s financial system reform and financial structure optimization.However,the lack of necessary and appropriate laws and regulations and related administrative supervision measures,as well as the lack of self-regulatory supervision of the industry,have led to the unhealthy development of ecological equity crowdfunding,irregular behavior,and a large number of criminal risks in the development process.The criminal risk of equity crowdfunding includes operating risk and alienation risk.Operating risk refers to the criminal risk arising from the normal operation of equity crowdfunding activities due to violations of relevant laws and regulations.Alienation risk refers to illegal crimes under the guise of equity crowdfunding.Criminal risks arising from activities and risks arising from illegal conduct of real equity crowdfunding processes.These risks undermine the market economic order,cause losses to investors,damage the development ecology of equity crowdfunding,and affect the development of the entire Internet finance.Certain criminal regulations must be implemented.In the development process of equity crowdfunding,the illegal behaviors that may occur among all parties are in accordance with the relevant provisions of the criminal law,and it is also possible to regulate them with criminal law.It is necessary and possible to use criminal law to control illegal behaviors inequity crowdfunding,but innovation has two sides,so when it is regulated,it is necessary to adhere to some ideas to properly control the limits of regulation,both to combat crime and protect innovation.First of all,with the continuous progress of the reform of China’s economic system,the normative protection purpose of the financial criminal law should also be adapted to the development of the times,and the legal benefits of protection should be changed from "order" to "interests." The important part of the market,when it is regulated,it should also follow the financial criminal law’s normative protection purpose,play the decisive role of the market in the allocation of resources,encourage and protect innovation,and protect the interests of investors.Secondly,because the criminal risks involved in equity crowdfunding are mostly administrative offenders,which have the characteristics of secondary illegality,when they are regulated,the principle of secondary illegality must be implemented,and the acts identified as criminal offenses should be administrative.Prerequisite law.In the end,neither criminal law nor punishment is a panacea.The illegal behavior in crowdfunding of equity should be changed from administrative violations to criminal offenses and the penalties of criminal law should be maintained.Ideas can gain substantial vitality only by guiding practice.Under the guidance of the above concepts,when regulating illegal behaviors in equity crowdfunding,specific paths can be chosen: advancing special legislation in the field of Internet finance;independently judging criminal acts in judicial practice,and carefully distinguishing administrative offenses from criminal offenses;And at the time of the final qualitative punishment of criminal offenses,the application of crimes such as the issuance of shares,companies,and corporate bonds without authorization,crimes of illegal fund-raising,and crimes of illegal business shall be restricted,and the modest nature of criminal law shall be maintained.