The Legal Risk And Legal Prevention Of Quity-based Crowd-funding In China

Due to the economic crisis of 2008,equity-based crowd-funding become popular as a trading pattern.Small or micro enterprises and start-up enterprises find it difficult to get its development from the traditional financing channels of funds,its essence is the direct financing between issuers and investors.In our country,there is a trend to develop the "Internet + financial" at present,the equity-based crowd-funding is an important power boost for "public entrepreneurship,people innovation".Realized the function which the traditional financing channels can not be achieved.On the one hand,equity-based crowdfunding raise can effectively reduce for the small micro enterprises,especially the start-up financing costs,improve the financing efficiency,on the other hand,to the general public,it directly involved in the equity investment opportunities.But as its rapid development,it also brings a series of problems.Because of the relevant legal norms not following up in time,the equity-based crowdfunding of our country is still in the legal regulation of the "vacuum",the lack of necessary legal norms to the raised platform and issuer is facing great compliance risk,it is difficult to achieve the purpose of reduce the cost of financing or promote efficiency of financing.On the other hand,it also led to the lack of legal norms for lack of investor protection measures which should be mandatory,investors need to be ready to face the difficult contract fraud,financial security,rights protection and so on.Such a lot of risks.In order to reduce the legal risk,fully promote small micro enterprise financing efficiency,reduce the financing cost and effectively protect the interests of investors,it is imperative to put the equity-based crowd-funding in the legal regulation system in our country.Like other Internet financial pattern,the equity-based crowd-funding has obvious efficiency value and fair value,it is considered to be one of the typical representative of Internet financial.But due to its outstanding legal risk and public financial properties,the equity-based crowd-funding of our country currently can only distort the nature of its public offering ways to survive.And the other in the vigorous development of the Internet financial mode,compared to the growth of China's equity-based crowd-funding always lack of legal status.Since 2014,the government repeatedly made restrictions.Although this raise within the legal framework for China's equity-based crowd-funding in the healthy development to provide the basis and the path,but the harsh restrictions on "public offering" against the essence of equity-based crowd-funding of openness,universality,so to explore a more reasonable,more conducive to the optimal allocation of resources and reasonable legislative path it is necessary to protect the interests of the investors.Equity-based crowd-funding relationship in this article start from the three sides respectively the legal risks faced by the main body of the equity-based crowd-funding by listed legal risk,one by one,put forward the legal countermeasures,trying to build a more complete and reasonable adjustment of equity-based crowd-funding legal relationship of the financial law system.Regardless of the legal risks in the field of criminal law,in the field of civil and commercial law,at present,China's equity-based crowd-funding of the main legal risks include investment and financing of contract fraud risk,interest risk,the partnership organization forms of moral risk,the risk of the legitimacy of the raised platform,disorderly competition law risk and so on.To get corresponding legal measures for the legal risk,in addition to the revision of the specific legislative amendments,must also be updated from the legislative ideology,conform to the trend of the development of the financial market of our country and build the "securities law" as the core of multi-level financial legal system,for the Internet in the field of financial market regulation and private autonomy to set aside enough space,at the same time adhere to protect the interests of investors and maintain the market economic order of the basic value goal,through small exemption system,public private difference regulation,qualified investors and investment barriers to entry and clear all the raised platform legislative measures,such as the rights and obligations,a reasonable legal regulation,give equity-based crowd-funding the legal space for its development and prosperity.Apart from legislative channels to solve the current legal risks existing in the financial sector,for the social public extensive financial universal education is also significant.To improve risk identification and awareness,to strengthen the social public understanding of the investment risk at the same time,also conducive to expand our country's financial market,make the social idle funds flow effectively,so as to realize the optimal allocation of resources,and ultimately serve the overall goal of China's socialist economic construction.