Regulation Paths of Regulatory Sandbox Entry Mechanism in China

Mi Wang

doi:doi:10.11648/j.ijls.20220504.17

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Regulation Paths of Regulatory Sandbox Entry Mechanism in China

Mi Wang

Published in International Journal of Law and Society (Volume 5, Issue 4)

Received: 30 November 2022 Accepted: 14 December 2022 Published: 27 December 2022

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Abstract

With the rapid development of Fintech, in the end of 2019, China introduced the “regulatory sandbox” mechanism which had developed very fast in recent years. Although some relevant regulations and policies have been issued, there is no mature and applicable regulation relating to the regulatory sandbox in China. Risks in the regulatory sandbox might spread to the whole financial market, therefore it is significant to establish an unambiguous entry standard rule for regulatory sandboxes. In China, there are some problems in the formulation of regulatory sandbox entry standards in projects and applicants reviewing and consumers protection. Through studying the operation of regulatory sandboxes in other countries and regions, it is found that the scope of regulatory sandbox applicants in China is not extensive and diversified enough. Also, there is a high possibility of power rent-seeking in the review of sandbox projects, which would increase the potential risks faced by consumers. Therefore, it is necessary to issue a special regulation regarding the regulatory sandbox clarifying the entry standard in China. This legislation should expand the scope and diversity of sandbox applicants, increase the transparency of projects review process, introduce independent experts to review the innovativeness of projects, and strengthen consumer protection in several aspects.

Published in	International Journal of Law and Society (Volume 5, Issue 4)
DOI	10.11648/j.ijls.20220504.17
Page(s)	395-406
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2022. Published by Science Publishing Group

Keywords

Regulatory Sandbox, Fintech, Entry Mechanism, Transparency

References

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APA Style

Mi Wang. (2022). Regulation Paths of Regulatory Sandbox Entry Mechanism in China. International Journal of Law and Society, 5(4), 395-406. https://doi.org/10.11648/j.ijls.20220504.17

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ACS Style

Mi Wang. Regulation Paths of Regulatory Sandbox Entry Mechanism in China. Int. J. Law Soc. 2022, 5(4), 395-406. doi: 10.11648/j.ijls.20220504.17

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AMA Style

Mi Wang. Regulation Paths of Regulatory Sandbox Entry Mechanism in China. Int J Law Soc. 2022;5(4):395-406. doi: 10.11648/j.ijls.20220504.17

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@article{10.11648/j.ijls.20220504.17,
  author = {Mi Wang},
  title = {Regulation Paths of Regulatory Sandbox Entry Mechanism in China},
  journal = {International Journal of Law and Society},
  volume = {5},
  number = {4},
  pages = {395-406},
  doi = {10.11648/j.ijls.20220504.17},
  url = {https://doi.org/10.11648/j.ijls.20220504.17},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijls.20220504.17},
  abstract = {With the rapid development of Fintech, in the end of 2019, China introduced the “regulatory sandbox” mechanism which had developed very fast in recent years. Although some relevant regulations and policies have been issued, there is no mature and applicable regulation relating to the regulatory sandbox in China. Risks in the regulatory sandbox might spread to the whole financial market, therefore it is significant to establish an unambiguous entry standard rule for regulatory sandboxes. In China, there are some problems in the formulation of regulatory sandbox entry standards in projects and applicants reviewing and consumers protection. Through studying the operation of regulatory sandboxes in other countries and regions, it is found that the scope of regulatory sandbox applicants in China is not extensive and diversified enough. Also, there is a high possibility of power rent-seeking in the review of sandbox projects, which would increase the potential risks faced by consumers. Therefore, it is necessary to issue a special regulation regarding the regulatory sandbox clarifying the entry standard in China. This legislation should expand the scope and diversity of sandbox applicants, increase the transparency of projects review process, introduce independent experts to review the innovativeness of projects, and strengthen consumer protection in several aspects.},
 year = {2022}
}

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TY  - JOUR
T1  - Regulation Paths of Regulatory Sandbox Entry Mechanism in China
AU  - Mi Wang
Y1  - 2022/12/27
PY  - 2022
N1  - https://doi.org/10.11648/j.ijls.20220504.17
DO  - 10.11648/j.ijls.20220504.17
T2  - International Journal of Law and Society
JF  - International Journal of Law and Society
JO  - International Journal of Law and Society
SP  - 395
EP  - 406
PB  - Science Publishing Group
SN  - 2640-1908
UR  - https://doi.org/10.11648/j.ijls.20220504.17
AB  - With the rapid development of Fintech, in the end of 2019, China introduced the “regulatory sandbox” mechanism which had developed very fast in recent years. Although some relevant regulations and policies have been issued, there is no mature and applicable regulation relating to the regulatory sandbox in China. Risks in the regulatory sandbox might spread to the whole financial market, therefore it is significant to establish an unambiguous entry standard rule for regulatory sandboxes. In China, there are some problems in the formulation of regulatory sandbox entry standards in projects and applicants reviewing and consumers protection. Through studying the operation of regulatory sandboxes in other countries and regions, it is found that the scope of regulatory sandbox applicants in China is not extensive and diversified enough. Also, there is a high possibility of power rent-seeking in the review of sandbox projects, which would increase the potential risks faced by consumers. Therefore, it is necessary to issue a special regulation regarding the regulatory sandbox clarifying the entry standard in China. This legislation should expand the scope and diversity of sandbox applicants, increase the transparency of projects review process, introduce independent experts to review the innovativeness of projects, and strengthen consumer protection in several aspects.
VL  - 5
IS  - 4
ER  -

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Author Information

Mi Wang

Law Faculty, Liaoning University, Shen Yang, China

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APA Style

Mi Wang. (2022). Regulation Paths of Regulatory Sandbox Entry Mechanism in China. International Journal of Law and Society, 5(4), 395-406. https://doi.org/10.11648/j.ijls.20220504.17

Copy | Download

ACS Style

Mi Wang. Regulation Paths of Regulatory Sandbox Entry Mechanism in China. Int. J. Law Soc. 2022, 5(4), 395-406. doi: 10.11648/j.ijls.20220504.17

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AMA Style

Mi Wang. Regulation Paths of Regulatory Sandbox Entry Mechanism in China. Int J Law Soc. 2022;5(4):395-406. doi: 10.11648/j.ijls.20220504.17

Copy | Download

@article{10.11648/j.ijls.20220504.17,
  author = {Mi Wang},
  title = {Regulation Paths of Regulatory Sandbox Entry Mechanism in China},
  journal = {International Journal of Law and Society},
  volume = {5},
  number = {4},
  pages = {395-406},
  doi = {10.11648/j.ijls.20220504.17},
  url = {https://doi.org/10.11648/j.ijls.20220504.17},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijls.20220504.17},
  abstract = {With the rapid development of Fintech, in the end of 2019, China introduced the “regulatory sandbox” mechanism which had developed very fast in recent years. Although some relevant regulations and policies have been issued, there is no mature and applicable regulation relating to the regulatory sandbox in China. Risks in the regulatory sandbox might spread to the whole financial market, therefore it is significant to establish an unambiguous entry standard rule for regulatory sandboxes. In China, there are some problems in the formulation of regulatory sandbox entry standards in projects and applicants reviewing and consumers protection. Through studying the operation of regulatory sandboxes in other countries and regions, it is found that the scope of regulatory sandbox applicants in China is not extensive and diversified enough. Also, there is a high possibility of power rent-seeking in the review of sandbox projects, which would increase the potential risks faced by consumers. Therefore, it is necessary to issue a special regulation regarding the regulatory sandbox clarifying the entry standard in China. This legislation should expand the scope and diversity of sandbox applicants, increase the transparency of projects review process, introduce independent experts to review the innovativeness of projects, and strengthen consumer protection in several aspects.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Regulation Paths of Regulatory Sandbox Entry Mechanism in China
AU  - Mi Wang
Y1  - 2022/12/27
PY  - 2022
N1  - https://doi.org/10.11648/j.ijls.20220504.17
DO  - 10.11648/j.ijls.20220504.17
T2  - International Journal of Law and Society
JF  - International Journal of Law and Society
JO  - International Journal of Law and Society
SP  - 395
EP  - 406
PB  - Science Publishing Group
SN  - 2640-1908
UR  - https://doi.org/10.11648/j.ijls.20220504.17
AB  - With the rapid development of Fintech, in the end of 2019, China introduced the “regulatory sandbox” mechanism which had developed very fast in recent years. Although some relevant regulations and policies have been issued, there is no mature and applicable regulation relating to the regulatory sandbox in China. Risks in the regulatory sandbox might spread to the whole financial market, therefore it is significant to establish an unambiguous entry standard rule for regulatory sandboxes. In China, there are some problems in the formulation of regulatory sandbox entry standards in projects and applicants reviewing and consumers protection. Through studying the operation of regulatory sandboxes in other countries and regions, it is found that the scope of regulatory sandbox applicants in China is not extensive and diversified enough. Also, there is a high possibility of power rent-seeking in the review of sandbox projects, which would increase the potential risks faced by consumers. Therefore, it is necessary to issue a special regulation regarding the regulatory sandbox clarifying the entry standard in China. This legislation should expand the scope and diversity of sandbox applicants, increase the transparency of projects review process, introduce independent experts to review the innovativeness of projects, and strengthen consumer protection in several aspects.
VL  - 5
IS  - 4
ER  -

Copy | Download