On Regulation Of Peer To Peer Lending Illegally Absorbing Public Deposits

Peer to peer lending (P2P) is an agency relying on the Internet as intermediary lending information as well as a combination of inclusive financial concepts and Internet era. In recent years, as high-yield and low-threshold has let P2P lay a market foundation of its rapid development in China, resulting in the number of P2P presents a "blowout" growth mode. At the same time, due to legal regulations lag, China’s current regulation for P2P is still in the exploratory stage. The regulatory system is not perfect so that P2P shows many of the operation risks, among which the most prominent is the issue of illegally absorbing public deposits. We learned about the advanced legislative experience from foreign field of P2P and about the domestic research results. Based on China’s actual situation we analyzed the issue of illegally absorbing public deposits via a legal perspective as well as explored some solutions to this problem in form of regulation proposals. This article is divided into four parts:First we recover the generation background, current development status and the major present risk of P2P in China, and proposes susceptibility and high incidence of the risk of P2P illegally absorbing public deposits.Second, we analyze the specific form of P2P illegally absorbing public deposits by discussing "Oriental venture case" and a series of typical cases.Third, we sort out causes for P2P illegally absorbing public deposits risk arising and regulatory status of the specific industry.As a result, we explore, based on analysis of the reasons previously discussed, on how to regulate P2P illegally absorbing public deposits and propose legal countermeasures for China’s national conditions combined with the advanced experience of foreign legislation.