Research On Legal Protections For Equity Crowdfunding Investors In China

The rise of equity crowdfunding in recent years actually took the Internet finance ride,coupled with the arrival of the "double-creation" era,but the rapid development of supervision and backward conflict,brought chaos to the equity crowdfunding industry.Early-stage small and micro enterprises urgently want to obtain investment funds through equity crowdfunding,and investors are eager to obtain return on investment.However,each lacks a sound legal system to guide,and supply and demand parties often cannot find their own way.This paper selects the most serious problem in equity crowdfunding-investor protection as an entry point,through the combing of China's equity crowdfunding development,and then through the internal legal relationship of equity crowdfunding Analysis to find out the current risks faced by investors,and then analyze where the protection of investors in China's legal supervision system is inadequate,and finally propose to improve China' s Investor Protection System in Equity Crowdfunding.This article believes that equity crowdfunding is an important financing tool for small and micro startups in China,and it is also a new tool for China's current national investment and wealth management,and an important part of the multi-level capital market financing system.It is an entrepreneurial market with "mass entrepreneurship and innovation".However,due to the imperfection of the current regulatory system,investors have suffered various risks including the risk of equity crowdfunding legitimacy,the risk of fraud caused by information asymmetry,the risk of depository and management of funds,and the risk of information leakage.The deficiencies in our country's laws are:the lack of a statutory recognition of equity crowdfunding,irrational public bans,unscientific entry of investor thresholds,and lack of detailed disclosure rules.To this end,this article examines the United States' regulations on the equity crowdfunding division of permitted investors,the appropriate management of investors,the issuance of a registration exemption system,the fund-raising portal system,and the information disclosure system.Finally,the proposal for building an equity crowdfunding investor protection system in China is proposed:By designing the corresponding systems from the perspectives of the funder,the investor,and the platform level,the legal protection mechanism for equity crowdfunded investors in China will be constructed,including:At the level of financiers,the legalization of equity crowdfunding is promoted,the exemption system is designed,and information disclosure by financiers is enhanced;appropriate investor thresholds are set at the investor level,and a cooling-off period system is set up for investors.The platform's information disclosure and review obligations,improve the funding of third-party hosting,set up the appropriate platform behavior standards,and protect the confidentiality of business information.