The Analysis Of The Crime About P2P Lending Inchina

P2P Lending is one of the Internet financial innovations, and also the great breakthrough to traditional bank finance and private finance. Through setting up a website, P2 P Lending creates relationship between lenders and debtors. It has similarities with private financing whose business is direct financing. In the context of lacking of law about financial system, the business of P2 P Lending keeps to be sensitive. P2 P Lending is popular in China, the reason may be that our private capital is massive, but there is little investment channel for Chinese. Another reason may be that small and micro enterprises are hard to get bank loans which are much easier for large state-owned enterprises. It is hard to understand that the P2 P Lending in China has no regulations or regulatory agencies. As a result of that, criminal law has to be the powerful weapon to combat such violations of P2 P Lending, although criminal law should be the last mean to obtain relief for casualties. As we all know, criminal law should to be restraining, the practice of governing P2 P Lending with criminal law will harm the authority of the Criminal Code.The aim of this paper is to clear which fair behaviors of P2 P Lendings may have possibilities to get involved in criminal law through introducing the different operational modes. Especially when the P2 P Lending in China has no administrative laws and regulations, the operators of P2 P Lendings should be warned that they should not operate such things which would violate the criminal law. In the end of the paper, I will give my advice and suggestions to such dangerous operations. The ultimate purpose is to supervise and urge our jurisprudence to update to adapt to the changing operations of P2 P Lending. Before the jurisprudence has been updated, the criminal policies should be restraining, those operations which have little hazard to our society should be regarded as innocent, and those which have lower hazard should give a lesser punishment.The paper is divided to three parts. The first one is to introductions of P2 P Lending, including the research backgrounds and the development situations in the United States and UK. As the first part of the paper, I will introduce the legal relationships in P2 P Lending, and the unique characteristics of P2 P Lending, to make the following discussion to be much distinct. Also, I turn to the P2 P Lending in the United States and UK and their supervision model to compare with ours.The second part is key one to the whole paper. First, I introduce the three modes of the operation of P2 P Lending, including the traditional intermediation platform, the on-line lending security and the offline assignment of debt. Then I analyze the two accusations about the three operation modes. I try to clarify the important characteristics of the crime of getting illegal deposits from the public and the crime of setting illegal financial institution, then to affirm the illegality of related operations. Most of the P2 P Lendings do put the fund of investors in their deposits, if such deposits have no regulations, the funds of investors can not be guaranteed effectively, let alone that the P2 P Lending will be trapped in the criminal law. The mode of offline assignment of debt may violate the crime of getting illegal deposits from the public, if they make the fund of investors impairing. And they may violate the crime of setting illegal financial institution if they guarantee to the investors with themselves or their related corporations, or they pack the mortgages and sell them. In the end, I will do some suggestions to make the P2 P Lending to avoid the criminal offences.The third part gives my suggestions to the perfection of legal system, including the laws and regulations beyond the criminal law and within the criminal law. Beyond the criminal law, administrative laws and regulations should be issued to clarify the legal range of operation of the P2 P Lending, emphasizing the supervision of operation mechanism. Within the criminal law, the judicial office should keep restrain to the P2 P Lending to provide room for the innovative development of the P2 P Lending.