The reason is that crowdfunding itself carries certain risks, so it must be included in supervision.
The specific risks are as follows:
1. Risk of illegal fund-raising
According to the "Interpretation of the Supreme People's Court on Several Issues Concerning the Specific Application of Laws in the Trial of Criminal Cases of Illegal Fund-raising" 》This judicial interpretation was issued to punish criminal activities such as illegal absorption of public deposits and fund-raising fraud, and to maintain the healthy development of my country's socialist market economy. As opposed to crowdfunding platforms, their operational purposes include encouraging and supporting innovation, developing public welfare undertakings and making profits. The healthy development of crowdfunding platforms will not have a negative impact on my country's market economy and does not meet the substantive requirements for illegal fund-raising crimes. But we must also strictly guard against criminals using crowdfunding platforms or crowdfunding projects to defraud project supporters and investors of funds.
2. Risks of shareholding on behalf of others
The number of public shareholders attracted by a crowdfunding project shall not exceed fifty. If it exceeds, the unregistered one cannot be registered as a limited liability company; if it has been registered, the excess investors cannot be recorded in the shareholder register by the industrial and commercial department to enjoy shareholder rights.
3. The risk of infringement of intellectual property rights (the existence of piracy speculation)
One of the main purposes of establishing a reward-based crowdfunding platform is to explore creativity and encourage innovation; The main purpose of the initiators of the financing project is to realize their ideas and sell their ideas; while the starting point of the investors' investment is to support the ideas and purchase novel products. However, most of the crowdfunding projects posted on reward-based crowdfunding platforms are semi-finished ideas that have not yet applied for patent rights, so their rights and interests cannot be protected according to laws related to intellectual property rights.
4. Non-standardized risk
Crowdfunding is in its infancy in China, and its development is immature. There is no industry standard established.
5. Fraud
At present, most investment participants still lack the necessary understanding of the income forms and risks of crowdfunding projects.
6. The legal and regulatory mechanisms are imperfect
Or because crowdfunding has just emerged, the country lacks relevant legal provisions and corresponding regulatory supervision mechanisms for it, and the corresponding crowdfunding The platform itself also lacks management experience.