Study On China’s Legal System Of Regulatory Sandbox In Fin Tech

Research shows that the scale of China’s Fin Tech market has been growing continuously and rapidly year by year,and china has become the largest Fin Tech investment market in the world.However,the developing Fin Tech made structural changes happened in the traditional financial industry.The destructive innovation of Fin Tech has led to the changes of social relations in the original financial field.The barriers between industries have been broken,and the transmission of risk can easily cause systemic risk.In the aspect of financial supervision,the legal blank,legal lag and legal conflict caused by the incompleteness of law further expand the negative impact of financial supervision inadaptability.Under the dual pressure of "market failure" and "government failure" in Fin Tech,China’s financial regulatory institutions have also begun to actively explore and practice Reg Tech in China.Reg Tech has become the key variable that triggers the profound transformation of China’s current Fin Tech and financial supervision.How to find a suitable tool and carry out the necessary system design to stimulate the vitality of Fin Tech innovation and maintain the security and stability of financial order as well as protect the legitimate rights and interests of consumers have become the biggest problems in China’s financial supervision.In 2015,FCA of UK creatively put forward the "regulatory sandbox" mechanism to creating a regulatory space that can is compatible and coordinated with Fin Tech innovation,risk compliance,and risk prevention.soon after its success in UK,it has been quickly imitated by many countries and regions,which successively established their own supervision sandbox system and operation model.In 2018,FCA established the global financial innovation network(GFIN)in cooperation with financial regulators and relevant organizations in 11 other countries.These successful experiences provide a possible reference for China’s Fin Tech supervision.In China.This paper focus on whether it is necessary to introduce supervision sandbox,whether it is necessary and feasible to design the system of "regulatory sandbox",and how to build a sandbox supervision legal system of China,so as to promote the development of China’s Reg Tech and solve the problems of financial supervision technology.In order to solve these problems,on the basis of literature research,scientific induction,logical analysis and comparative analysis,according to the idea of "discovery problem,propose assumptions,validate assumptions,comparative references solve problems",this paper analyzes the construction of the legal system of China’s "regulatory sandbox" from the following aspects:First,with the development of financial risk under the background of financial science and technology as the starting point,combined with the needs of Reg Tech in china,this paper puts forward the problems faced by China’s Fin Tech supervision.Second,introduce "regulatory sandbox".After a clear legal definition of "regulatory sandbox",this paper evaluates and analyzes the system from four aspects: concept,characteristics,operation logic and theoretical basis,and puts forward the idea of establishing supervision "regulatory sandbox" to solve the supervision problems of Fin Tech supervision in China.Then,based on the analysis of the necessity of introducing the regulatory sandbox mechanism into China,this paper discusses the necessity and feasibility of constructing the "regulatory sandbox" legal system in China,which has proved that the construction of this system can satisfy the needs of the current development of Fin Tech in China and meet the needs of " rule by law " in Reg Tech in China,and finally concludes that China should also be able to construct the legal system of "regulatory sandbox".Third,by examining the operation mechanism and system design of regulatory sandbox in the UK,Australia,Singapore and Chinese Hong Kong,we can find out the beneficial experience of regulatory sandbox practice in other countries.Finally,based on the reality of China’s Fin Tech supervision,this paper explores the construction of China’s regulatory sandbox legal system from six aspects: operation mode,legislative mode,operation mechanism,protection mechanism of consumer rights and interests,protection mechanism of information security and supporting and guiding mechanism.