Abstract: The reason why illegal fund-raising behaviors are widely spreading is due to the fact that the state does nothing else but blindly denies the legal status of private financing behavior with prohibitions, restrictions, striking and other order-type legal regulations on private fund-raising behaviors, especially insisting on relying on “criminal punishment”. However, there is absence of logic in the identification of illegal fund-raising behaviors; the “directness” and “indirectness” of such behaviors are usually confused; and it is difficult to distinguish effectively between “the purpose of use” and “the purpose of illegal possession” of fund-raising behaviors. It is suggested that private capital should be guaranteed to be introduced reasonably and orderly into the financial industry at the legal dimension. The simple and crude administrative banning should be replaced by the standardized administrative regulations, so as to form a regulation pattern of “paying attention to both persuasion and prevention” supplemented by “criminal punishment”. In view of the development trend of the securitization of illegal fund-raising, the standards to recognize illegal fund-raising behavior should be established with differentiation, so as to form an effective regulation on various types and kinds of illegal fund-raising tools or illegal fund-raising behaviors.

Key words: illegal fund-raising; financial monopoly; crack down on crimes; securitization