A Study On The Legal Problems Of Financial Risk Regulation In Internet

As one of the extremely popular topics, Internet finance was mentioned in thegovernment report for the12th National People’s Congress for the very first time. Inthe report, it is required to promote the development of Internet finance and to perfectthe system of supervision and cooperation.To know Internet finance，its definition and scope is the starting point. However, thereis no authoritative conclusion about it at present. Therefore, the essay will start withthe discussion of some typical samples, such as P2P, Crowdfunding and especially“Yuebao”.Set “Yuebao” as an instance, the essay analyzed the innovation of the operation modeof Internet finance, which revealed that the participating subject and operating processof Internet finance is different with traditional finance. However, indeed, the essenceof Internet finance is finance relying on fund companies. It is the character of Internetitself, such as simple and fast, which makes Internet finance prevalent. On the otherhand, because of the factor of Internet, the legal relation among customer，“Yuebao”and Tianhong asset management will likely cause kinds of risks, namely, the risk ofthe uncertainty of policies, the risk of breach of contracts, the risk from market as wellas the risk of information disclosure.Considering the risks above, the essay focuses on the way to escape the risks bycompleting the system of relevant laws and supervisions. After comparing the lawsand regulations of America in this field with the China’s, the essay gives somethoughtful advises on how to avoid the risks of Internet finance.The propose of this essay is to endeavor to ensure the Internet finance can achievedevelopment smoothly in China based on other counties’ experiences.