Research On Fintech Regulatory Sandbox System

As an important tool for balancing financial innovation and traditional financial regulatory objectives,the fintech regulatory sandbox has attracted the attention of more and more countries.China's fintech development is strong,and financial regulators are exploring ways to guide and regulate the healthy development of fintech at the institution level.Therefore,an in-depth study of the fintech regulatory sandbox has important theoretical significance for the improvement of China's financial regulatory theory and has important practical significance for the healthy fintech development and fintech regulatory innovation in China.Through comparative analysis and literature analysis and other methods,the paper discusses the basic theories of the fintech regulatory sandbox in detail.Based on a detailed analysis of the main contents of the fintech regulatory sandbox system in representative countries and regions,it summarizes the commonality and differences of global fintech sandboxes,and then put forward specific suggestions to build China's fintech regulatory sandbox.Besides the introduction and conclusion,the paper is divided into four parts.The first part discusses the basic theory of the fintech regulatory sandbox system,including the concept,advantages,disadvantages,and significance of the fintech regulatory sandbox.A fintech regulatory sandbox is a regulatory tool that created by financial regulators for fintechs to test innovative financial products and services in a limited time and controlled space.Compared with other fintech regulation methods such as innovation hub and class waiver,the regulatory sandbox has obvious advantages,and its shortcomings can be avoided through corresponding system design.The fintech regulatory sandbox is not only a regulatory way to balance financial innovation and traditional financial regulatory objectives,but also acase-by-case regulation,which plays an important role in maintaining financial stability,promoting financial innovation,and protecting financial consumers.Based on the relevant legislations of representative countries and regions,including the United Kingdom,Singapore,Australia,Hong Kong,China,and Taiwan,the second part analyzes the main contents of the fintech regulatory sandbox system in detail from six aspects: the objectives of the fintech regulatory sandbox,application,evaluation criteria,supervision and management during the test period,consumer protection and exit mechanisms.The third part summarizes the commonalities and differences of the global fintech regulatory sandbox system.The fintech regulatory sandbox generally has clear regulatory sandbox objectives,emphasizes the balance between innovation benefits and risk prevention,focuses on the interaction of regulators and fintechs,values consumer protection,and emphasizes transparency of regulatory sandbox.On the other hand,due to the obvious differences in financial development levels,financial regulatory systems,and financial development policies,countries and regions show obvious differences in the mode of the regulatory sandbox,the choice of supervision institutions,the document of the regulatory sandbox and the exit mechanism.The fourth part discusses the establishment of China's fintech regulation sandbox system.Establishing a fintech regulatory sandbox is not only an objective requirement for the healthy development of fintech in China but also a requirement for strengthening fintech regulation in China.From the perspective of the legal and regulatory framework,stakeholder ecosystem,capacity and resources,financial market conditions and policy priorities,China has a good environment and foundation for establishing a regulatory sandbox.Drawing on the design of the global regulatory sandbox system,the author proposes that China's fintech regulatory sandbox systemshould be led by the People's Bank of China to issue guidelines;financial innovation and financial inclusion are objectives of the regulatory sandbox;improving sandbox consumer protection in terms of information disclosure,consumer types and investment restrictions,compensation mechanisms,and consumer dispute resolution mechanisms;providing fintechs with diversified exit mechanisms such as granting financial licenses,amending financial regulations,and referring to relevant institutions;strengthening the interaction between financial regulators and fintechs through regular reports and close monitoring.