Research On Chinese Legal Issues Of Regulating The Internet Finance

The Internet finance is a combination of the internet and finance. It is concerned with financial activities to achieve functions of financing, payment, via the Internet and information agencies, including the third party payment mode, P2 P, crowd funding, financial institutions of information, Internet financial portal, etc. In the new mode of internet finance, the specialization and division of modern finance are weaker than before, financial product are more simple. It is financial disintermediation and disintermediation. It is a kind of more democratized inclusive finance model. Internet financial is not a new form of finance, the core of the financial function, across time and space value exchange, does not change because of the Internet. But in the Internet finance, many products are obviously different from the traditional financial products of liquidity, profitability and risk, and have the characteristic of diversity, comprehensiveness, differentiation and trans boundary and in the form of legal nature. These characteristics need to build a more coherent system of rule of law to ensure effective supervision and management, need to choose new regulatory principles to determine the appropriate regulatory boundary and the appropriate measures.In china, internet finance broke out in 2012 lead by Alibaba. A lot of non-financial institutions with private capital enter into the internet financial industry,such as Tencent, Jingdong, Baidu and so on. Very different Internet financial in the us and Europe because of China's unique political, economic, legal, and cultural background. In strict financial supervision, the development of the network financial situation can be described as imbalances and chaos, and the risk of brewing and bottom-up influence the stability of the financial system.In china, one important issue of internet finance for the regulators is how to balance the financial innovation and financial regulation. The legal structure of internet finance is the dual structure of "hard law and soft law " and the dual structure of “public law and private law”. More specifically, in order to improve the legal regulating of the internet financial, we must build and risk prevention as the core of the regulatory system and financial consumer protection, guarantee regulatory coordination. It is based on the unity and coordination of the rule of law, enhance industry self-discipline supervision, establish the Internet financial market access system, credit reporting system, the information disclosure system and blacklist system of punishment according with the characteristics of the internet finance.