Research On The Legal System Of Lending-based Crowd-funding

In the context of rapid development of Internet finance, the lending-based crowd-funding industry has bloomed from PPDAI in 2007 to more than 4000 lending-based crowd-funding platforms today, with the development speed much faster than the other industries. As a new channel of investment, lending-based crowd-funding helps small and micro business with financing difficulties and promotes the rapid development of world economy. The fast growing novelty, however, has been challenged with various problems including the ambiguous legal status of the lending-based crowd-funding, ordinary investors' ability to identify, imperfect information disclosure risks and fund management. Problems are also seen in the practice, such as platform runway, difficulty in cash withdrawal, investigation by relevant organs with suspicion of illegal fund-raising and platform collapse etc. According to the statistics, the proportion of trouble platforms was as high as 33.2% by the end of 2015. This study makes comparative analysis of the legislative system of lending-based crowd-funding in the UK and the USA, and in view of the risk points and problems of lending-based crowd-funding practice in China, puts forward suggestions, namely clarifying the application of law for lending-based crowd-funding practice,strengthening the protection of investors, improving information disclosure system, as well as specifying the regulation models and the supervisory organs of lending-based crowd-funding and their responsibilities. so as to better regulate the lending-based crowd-funding industry in China for the purpose of healthy and rapid development.