Research On Legal Risk Issues Of Equity Crowdfunding

The Equity Crowdfunding relying on Internet is emerging Internet financial model, which firstly appeared in the United States. At 2011 the Equity Crowdfunding appeared in our country, there has been a large number of domestic Equity Crowdfunding platforms, such as Angel Crunch, Da Jia Tou, Yun Chou,etc.Compared with traditional equity investments, the Equity Crowdfunding's main advantages includes: in terms of the financier, The Equity Crowdfunding's financiers are medium small and micro-sized enterprises and start-ups, which has been in difficulties in financing, financing expensive embarrassment, these are greatly hindered the development of medium small and micro-sized enterprises and start-ups, The Equity Crowdfunding emergence let medium small and micro-sized enterprises and start-ups have the development of the spring, They can receive financing at a low cost and high efficiency in the Equity Crowdfunding's platforms, thus it effectively solved the medium small and micro-sized enterprises and start-ups' difficults ituation. The Equity Crowdfunding becomes the medium small and micro-sized enterprises and start-ups' favourite; in terms of investors, the Equity Crowdfunding is truly inclusive finance. Because of the higher threshold, ordinary investors do not participate in traditional equity investments. Their small and idle funds have not any investment channels, but the Equity Crowdfunding just meet the needs of ordinary investors. It opens up a new investment channels for ordinary investors and effectively realizes the capital dock.However, the Equity Crowdfunding is a new thing. The existing domestic legal system is not suitable for the development of the Equity Crowdfunding, coupled with the lack of government regulation and Industry self-discipline rules the Equity Crowdfunding in our country facing enormous legal risk, these risks has greatly hindered its development.Thus, I firstly analyze the Equity Crowdfunding's concept and features, secondly I introduce and analyze a typical domestic Equity Crowdfunding platform business modelAnd the relationship between securities issuance, finance and non-finance and illegal fund raising. Thirdly I analyze the relationship between the Equity Crowdfunding'participants; Lastly I summarize the legal risks of the Equity Crowdfunding in our country.By introducing and evaluating US the Equity Crowdfunding's legislation, I draw on beneficial enlightenments for China. Now the Equity Crowdfunding is supervised by the CSRC, but the regulatory measures of Equity Crowdfunding have not yet been landed. In order to regulate the Equity Crowdfunding, the Securities Association of China issued the "Private Equity Crowdfunding Financing Management(Trial)"( draft)(hereinafter referred to as "Management Approach(trial)(draft)") as a basis for guiding the Equity Crowdfunding healthy and orderly development, but it is after all just self-discipline rules, there is no legal effect. Because of China's current legal system, the Equity Crowdfunding can only be defined as private Equity Crowdfunding and prohibited its public offering of securities. The Securities Association of China establishes the high investor access conditions and limits the number of investors. The measures violate the Equity Crowdfunding 'features of open, small amount and the public. Through the above analysis, I believe that the current regulation on the Equity Crowdfunding is worth considering for us, because the current regulation can not play the advantages of the Equity Crowdfunding, and in fact also can not effectively avoid legal risks faced by the Equity Crowdfunding.Based on this, I put forward my own views on supervision of initial Equity Crowdfunding by studying the US Equity Crowdfunding legislation, understanding the current status of the domestic Equity Crowdfunding and combining personal knowledge.In the current legal environment in our country, the Securities Association of China has no choice but to regard the Equity Crowdfunding as the private Equity Crowdfunding. I wish our country will modify existing laws and enact relevant regulation let the Equity Crowdfunding can show his true colors. It can make full use of the Equity Crowdfunding's advantages to promote China's economic growth.