Is corporate crowdfunding legal?

Legal analysis: Crowdfunding is generally legal. The purpose of crowdfunding includes encouraging and supporting innovation, developing public welfare undertakings and making profits. The benign development of crowdfunding platform will not have a negative impact on China's market economy, nor does it meet the essential elements of the crime of illegal fund-raising. But it is also necessary to prevent criminals from using the funds of project supporters and investors in crowdfunding platforms or crowdfunding project areas.

Legal basis: People's Republic of China (PRC) Criminal Law Amendment 12. Article 176 of the Criminal Law is amended as: "Whoever illegally absorbs public deposits or absorbs public deposits in disguised form, thus disrupting the financial order, shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention and shall also or only be fined; If the amount is huge or there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than three years but not more than ten years and shall also be fined; If the amount is especially huge or there are other particularly serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than 10 years and fined. " If a unit commits the crime mentioned in the preceding paragraph, it shall be fined, and the directly responsible person in charge and other directly responsible personnel shall be punished in accordance with the provisions of the preceding paragraph. "Anyone who commits the acts mentioned in the preceding two paragraphs and actively returns stolen goods and compensation before filing a public prosecution to reduce the occurrence of damage results may be given a lighter or mitigated punishment."