Research On The Legal Supervision Of Equity-based Crowdfunding

Due to the credit-crisis arising from the the recent economic downturn led to tightening loan standards beginning in 2008, the equity-based crowdfunding became more and more popular. Traditional forms of finance for small business also froze up during the economic downturn.In China,the equity-based crowdfunding has became prosperous since 2015. Some giants in financial industry also to do some business about it. The authority often issued official document about how should crowdfunding work, but it doesn’t have any Laws and regulations about it.The paper takes the equity-based crowdfunding platform as the start point of the regulation, which may lead us to a reasonable basic regulatory framework for it. In this Paper, I try to take the purpose of crowdfunding as the most important factor when we are talking about the structure of regulation. Consequently, creating two separate exemptions may help us to achieve the purpose of investors protection and capital formation. Although it may cost more at first, if we can be more detailed consideration when we are discussing the regulation. But because of the knowledge and the study competence I have, I have not discussed for more.The paper includes five parts:The first part is about equity-based crowdfunding platform. It introduced the dispute of conception, and my opinion about what the equity-based crowdfunding is, after that I will introduced how the crowdfunding platform work.The second part is about exemption. First it discussed about the the trouble of growth of equity-based crowdfunding in our nation. Second, it discussed how should we make the rules of exemption.The third part is about the limitation of investment. First, it discussed whether should we set the limitation for all investors. Second, it discussed how should we set the limitation of investment.The four part is about how should the platform to settle down the fraud. First it discussed the issue of investor education. Second, it point out that the platform plays the important role to settle the fraud.The last part is about a succinct summary about the whole paper.