Research On The Registration Exemption System Of Equity Based Crowdfunding

With the rapid development of Internet technology and its deeper integration with the financial market, equity based crowdfunding has become a research focus. Equity based crowdfunding contribute to solving the financing problem of small-sized enterprises and startups as well as enriching the investment channels for ordinary investors. However, despite the overwhelming support from the investor and financier, the development of equity based crowdfunding is severely limited for its conflict with the existing legal regime. Along with the nature of equity based crowdfunding become more and more precise among the academia and the increasing demand for equity based crowdfunding among practice fields,it is so important to conduct research on the registration exemption system of equity based crowdfunding which is available for the sustainable development of equity based crowdfunding. Besides the introduction and conclusion, this thesis conclude four part as follow:The first part is a discussion on basic theory of registration exemption system of equity based crowdfunding. Compared with traditional financing models, It holds number of different points to be a more effective way. And it is the registration exemption system of equity based crowdfunding. In that way, the paper could firstly deal with definitions of equity based crowdfunding, registration exemption system and registration exemption system of equity based crowdfunding. And the reasons why the system should be established are involved in this discussion: Theoretically, it is a must to construct multi-level capital market, to develop inclusive finance and to meet the need of the theory of financial efficiency. In practice, plenty of important issues, which include sound development of equity based crowdfunding, conundrum of small and medium-sized enterprises in financing development, enriching the securities issue system of our country and reasonable distribution of governmental resources in supervision, can benefit from registration exemption system of equity based crowdfunding.The second part is an exploration about legal background and dilemma of registration exemption system of equity based crowdfunding. The law is a product of social development, and development of economy and society always goes first. As a rising mode of Internet finance, equity based crowdfunding, it presents a series of challenges to part of the existing laws in China. From Guidance on Promoting the Sound Development of Internet Finance and the amendatory trends of the Securities Law, we can noticed that the determination of our country to supervise the equity based crowdfunding and the signs of establishing registration exemption system of equity based crowdfunding, while there are numerous difficulties on the way to establish registration exemption system of equity based crowdfunding. Generally speaking, four rocks stand in the way. Firstly, there are many conflicts between registration exemption system of equity based crowdfunding and part of the existing laws and regulations. Secondly, the legal attribute of equity based crowdfunding is obscure. Thirdly, the system lacks in security mechanism for investors. Fourthly, there is no registration exemption system of equity based crowdfunding.The third part is the experience of the registration exemption system of equity based crowdfunding of other country. Italy is the first country to regulate equity based crowdfunding through special legislation in Europe. American <Jumpstart Our Business Startups Act> is a monumental force in the world.so,author deliberately chose these two country to research on. Analyze not only its experience of legal regulation but also their helpful contents. In that way, provide with our country reference when building the registration exemption system of equity based crowdfunding.The fourth part is the specific ideas about how to building our own registration exemption system of equity based crowdfunding. Based on the elaborate analysis on the reason, the social background and legal impediment in establishing the registration exemption system of equity based crowdfunding and also the excellent experience of America and Italy, author provide with some suggestion on the establishment of registration exemption system of equity based crowdfunding of our country as follow: Firstly, clearly define the precondition before we build the system, including its legal attribute as well as its relationship between internet private equity financing; Secondly, establish the basic mechanism involving : subject and platform of the registration exemption system of equity based crowdfunding. Thirdly,establish the protection system of the registration exemption system of equity based crowdfunding, including :the investor protection system and the supervisory system. An integrated registration exemption system of equity based crowdfunding system can built in these way to promote the financing of startups and the protection of investor and finally contribute to the sustainable development of equity based crowdfunding.