Regulatory Quandary and Its Solutions of FinTech in China

With the development of big data, cloud computing, AI, block chain and other digital technologies, financial technology is being widely billed as one of the focus industries by the academics and practical realm in recent years. FinTech can improve the efficiency of financial resources’ allocation, enhance the system of risk control, and consolidate both the stability and inclusiveness of finance. Meanwhile, FinTech breaks the boundaries between technology and finance, which cannot eliminate the inherent risk of finance, and even makes financial risks much more infectious and concealed, thus bringing a regulatory dilemma. At present, Chinese supervisory authorities still keep the outdated supervisory thinking, usually in the extreme forms " laissez-faire” and " one-size-fit”, which leaves a room for regulatory arbitrage. In the future, all parties concerned should explore how to strengthen the balance between innovation and regulation of FinTech, and fully learn from mature experience of foreign countries to optimize regulatory policies. Especially, the regulatory technology should be applied to integrate the innovation and regulation of FinTech.