A Study On Internet Finance Regulation From A Government-Based Perspective

Governmental regulations are the government-imposed lawful restrictions or constraints on social or economic activities,with the purpose of maintaining specific public interests.The original purpose of governmental regulations is to prevent and rectify market failures and to pursue public interests.Although governmental regulations have evolved over time to reflect changes in the market environment and market demands,their mandatory and normative characteristics remain unchanged.Internet finance is an emerging field.It covers a complex web of interconnected disciplines,involving diverse operations,and a broad range of expertise.Off-site regulation is particularly difficult to achieve,and it is nearly impossible for any single government body to provide effective oversight across the entire industry.However,there is yet to be an established channel of information-sharing between different regulatory bodies.This calls for a reform of existing systems,methods and channels.Currently,there are two choices when it comes to reforming internet finance governmental regulations: 1.Set a higher standard for the industry;2.Keep the current level of standards imposed on the industry unchanged,and focus on improving governmental regulatory procedures and strengthening comprehensive coordination.For the latter to happen,it will inevitably involve adjustments of regulatory structures as well as the rights and obligations of legal persons in the industry.In this process,we need to find a way that does not impede the development of a robust financial sector and also avoids the outbreak of another financial crisis.This is a difficult challenge that requires all relevant parties to participate in order to find a solution.This thesis aims to offer an anal ysis from the government's perspective,by providing(i)an overall review addressing the differences and similarities between governmental regulation and industry oversight;(ii)a comparative analysis between two regulatory methods,“hard intervention” and “coordinated support”;(iii)a theoretical analysis of how to effectively develop governmental regulations for internet finance in the current stage;(iv)a summary of the status quo for the internet finance industry,and highlight regulatory problems through case studies involving breach of contract;and finally(v)advices on how to improve governmental regulations in the finance sector and how to promote the robust development of internet finance through perfecting regulations,oversight,and reducin g information asymmetry.