Research On Regulating Of Criminal Law Of Internet Equity-based Crowdfunding

Economic and social life conditions of China have undergone rapid development and transformation by 21 st century.Among them,the most significant change is the rapid emergence and comprehensive popularization of Internet technology.The popularization of Internet technology has revolutionized the production and life of people,and it has also injected strong vitality and vigorousness into the process of economic and social development.After the integration of Internet technology and finance,the concept of Internet finance,which means financing and payment,is realized on the integration of Internet technology and mobile communication technology.Internet financial contains a variety of types,one of the types is Internet Equity-based Crowdfunding,by the Internet Crowdfunding platform,the project initiators and project sponsors can work each other to solve the needs of initiative money to the project.The emergence of Internet Equity-based Crowdfunding lowers the difficulty of the fund-raising,facilitates enterprise financing activities,meanwhile,the emergence of Internet Equity-based Crowdfunding causes the mega impact of the traditional financial industry,it forces revolution of traditional financial system reform,demands a higher order of financial supervision and regulations,so as to adapt to the development of social economy.But since lawmakers in the financial management order in China has been holding financial monopoly ideology,meanwhile Internet Equity-based Crowdfunding development requires the precondition of financial liberalism,therefore,endogenous criminal legal risk will exist in Internet Equity-based Crowdfunding,it may impede the development of innovation of finance industry tremendously.Based on above,this article introduces the concepts,types,characters anddevelopment status of Internet Equity-based Crowdfunding in China,analyses the criminal legal risks of the Crowdfunding based on the project initiators,crowdfunding platform,capital sponsors.The financier,aka project initiators,are liable to be involved in crimes such as the crimes of issuing securities,corporate bonds,corporate bonds,illegal absorption of public deposits,fund-raising fraud,disclosure of non-compliance,and non-disclosure of important information.Crowdfunding platforms are liable for crimes such as un-authorized establishment of financial institutions,un-authorized business operations,crimes of occupational misappropriation,misappropriation of funds,and infringement of citizens' personal information.The capital sponsors of funds are vulnerable to money laundering.In order to develop a good and innovative Internet Equity-based Crowdfunding industry,it is necessary to determine a macro-principle of the criminal law system,and at the same time,according to the <Guidance Opinion>,“encourage innovation,guard against risks,seek profits and avoid harm,and develop healthily”.The request can be achieved through the establishment of a mitigated criminal policy for internet financial crimes,and the realization of the criminal regulation of equity-based crowdfunding on the Internet " refraining from doing,do it properly".Furthermore,on the one hand,an accurate distinction should be made between the normal behavior and alienation behavior of equity-based crowdfunding.On the other hand,it should distinguish between violations and crimes of equity-based crowdfunding,strengthen the convergence of administrative law and criminal law,and prudently apply criminal law.After analyzing the necessity and implementation path of a reasonable regulation of Internet equity-based crowdfunding,this article proposes some ideas on the regulation of Internet equity crowdfunding activities under the current criminal law framework.It also focuses on criminal risk and analyzes in detail of the crimes of issuing securities,corporate bonds,illegal absorption of public deposits,fund-raising fraud and the disclosure of non-compliance,non-disclosure of important information crimes,unauthorized establishment of financial institutions,un-authorized business operations.In summary,this paper aims to promote the orderly and healthy development of Internet equity crowdfunding by building a reasonable criminal law system,and better meet the financing needs of China's economic development.