Research On Perfection Of Internet Financial Regulation

The internet is the medium of information and the finance is the matching of information. The internet finance that arise from the integration of internet and financial can minimize the financial cost, realizing the maximization of financial efficiency. The author holds the view that the internet finance is the inevitable result of existing financial system and the civil finance, meanwhile it is an effective breakthrough of financial repression. It provides a new direction and means for the construction of multi-level market structure and the development of pratt & whitney financial in China. Especially, by promoting the small enterprises’ financing, the internet finance fills the gaps in our traditional finance for small and micro businesses as well as non-governmental microfinance, turning out to be an pleasant surprise.The internet finance, meanwhile, due to lack of effective legal norms and regulatory constraints, is in the barbarian reproduction of state, thus mutating out all kinds of Internet financial products and services. During this process, the radical idea which is persuading for promptness and the steady idea which is controlling the risk conflicts sharply. This conflict makes the risk mutual conduction, causing enormous potential risks for the financial market participants. Therefore, it is time to regulate the internet finance, whether to make this innovation legal, or to prevent maliciously damage to China’s financial system.This paper is divided into four parts.The first part is an overview of internet finance. First, the author studies the emergence and development of internet finance, in addition, summarizes and analyzes the existing concept and category of it. Since the internet finance is still in its rapid development initial period, the author thinks that the classification and definition of it are unscientific, causing incompletion. So, the classification of internet finance should based on whether it is a traditional financial business or a financial innovation, as well as whether its institution is a traditional financial institution or a non-financial internet institution. Secondly, the author analyzes the characteristics and development of current internet finance, clearly states the reason that the internet finance arise and its current development situation. Last, through the analysis of the current risk that internet finance faces and the reason behind it, the author draws the conclusion that the reason why the development of internet finance is so chaos is that the legal lag and the absence of regulation.The second part is the study about the legal relationship of internet finance. In order to make more in-depth research, the author narrows its research objects into three models which are Third Party Payment, Peer to Peer Lending and Equity-based Crowd-funding. After carefully researching about the operation mechanism of the three typical models mentioned above, and combining the financial legal theory, the author figures out the corresponding financial essence and legal status.The third part is the analysis of the internet finance legal issues. Combined with the content of the second part which is the study about the operation mechanism of the three typical models, the author organizes the key legal issues facing in the process of development, those become the perfect target for the next part relating to supervision improvement.The fourth part is the suggestion for the internet finance in the aspect of regulatory system. First of all, from the perspective of the integral design of the financial regulatory system, the author proposes that in order to deal with the dialectic relationship of contradiction and unity between the institute regulation and business regulation, as well as the central regulation and local regulation, we should rebuild the financial regulatory system in our country. Secondly, after analyzing the characteristic of the internet finance risk, the author comes up with the idea about principle and localization of internet finance regulation. Finally, the author boldly presents the new idea that incorporate the insurance company into the internet finance regulation system as a third-party, achieving insurance regulation for internet finance.