The Criminal Law Regulation Of Equity-based Crowdfunding Activities

In nearly decades,"Internet + financial" model developed rapidly.It has become a new and indispensable financial model.Internet-based crowdfunding activities belong to Internet financial activities.It provide a new financing way to the innovative entrepreneurs and small businesses.Reducing the financing cost,and the thresholds are lower.It also injecting fresh impetus to the development of economy.However,as a form of financial activities,equity-based crowdfunding activities are putted under the dual risks of finance and Internet.The superimposed risk of finance and Internet makes more crime in equity-based crowdfunding activities than in the non-Internet financial activities.Therefore,if there are no clear regulations in this field,there will cause serious consequences.At present,equity-based crowdfunding activity has not been included to the scope of legitimate issuance of securities by the law of china.Which leads equity-based crowdfunding activities be in a unclear legal status.The development of equity-based crowdfunding has a strong momentum.And the criminal activities related to it are constantly increasing.However,current legal provisions on equity-based crowdfunding in China are almost blank.Equity-based crowdfunding activities are in a gray area of law,which makes the order of equity-based crowdfunding activities be in chaotic.In real life,the increasing number case of "abscond with the money" involving equity-based crowdfunding have also confirmed such concerns.Some equity-based crowdfunding activities are easy to touch the existing red lines of law,such as the crime of fraud in financing of the criminal law.However,some behaviors cannot be restricted by the existing provisions of the criminal law.The existing provisions of criminal law cannot fully accommodate the new problems.No matter criminal legislation or administrative legislation,there are loopholes in legislation regulation.And the activities of equity-based crowdfunding cannot be comprehensively regulated.As a result,the participants in equity-based crowdfunding are low quality.There also exist many risks.Therefore,we must face up to the current criminal risk in this field.Therefore,regulations on equity-based crowdfunding activities must be perfect from the perspective of criminal law.To accelerate the speed of criminal legislation.We need give full play to the role of criminal law as the last line of defense to protect fairness and justice.And perfect the whole legal system.However,only punishment and suppression will restrict the development of industries.which is not in line with the requirements of economic development.So this kind of financial activities must be regulated within a reasonable limit.The first chapter is about the development status and existing problems of Internet equity-based crowdfunding.This chapter focuses on the definition,development status,operation model,existing problems,regulation status of equity-based crowdfunding activities and the connotation of criminal law regulation which is discussed in this paper.Firstly,the necessity of studying this topic is expounded through the analysis of the development status of equity-based crowdfunding activities.The trend of folk financing instead of the financial monopoly cannot be reversed.As a new financial model,the future development prospect of this activity is broad.However,this activity has a series of problems inevitably.So we should be timely to regulation of the financial activities with the relevant financial laws,administrative regulations and the criminal law.To avoid financial chaos.Secondly,this chapter discusses the major problems existing in equity-based crowdfunding activities from the perspective of three participants.Since equity-based crowdfunding involves three parties.The legal problems of the three parties are not same.So the existing problems can be accurately identified from the perspective of the three parties.Finally,the third section of this chapter summarizes the regulation status of equity-based crowdfunding activities.At present,the supervision of crowdfunding activities depends on the documents issued by ministries and commissions of the state council.There is almost no specific laws which is targeted at equity-based crowdfunding activities.From the perspective of criminal law,some alienated behaviors of equity-based crowdfunding activities can be regulated by the existing provisions,while others cannot be regulated.However,even if the regulation can be conducted in accordance with the existing provisions of criminal law.There are still some inappropriateness in the application process.This section also defines the connotation of the criminal law regulation which is discussed in this paper.The second chapter of this paper analyzed the criminal risk of alienation of the three parties which is involved in the equity-based crowdfunding activities.The <Implementation plan for special rectification of equity-based crowdfunding activities> enumerates the alienated behaviors of Internet equity-based crowdfunding activities.This chapter analyzes the criminal risk which is likely to be touched by the three parties involved in equity-based crowdfunding activities.And points out that the alienated behaviors of equity-based crowdfunding activities cannot be solved by the current criminal law.The third chapter of this paper puts forward the author's Suggestions on improving the criminal law regulation of equity-based crowdfunding activities.Firstly,the principles of regulating Internet equity-based crowdfunding activities are discussed.Since private financing replace financial monopoly is an inevitable trend.So,as a private financing mode,equity-based crowdfunding should not be excessively suppressed.The regulation of equity-based crowdfunding by criminal law should be discussed under the restrictive principle of criminal law.The second section of this chapter is about the author's suggestion on the criminal law regulation of Internet equity-based crowdfunding.