Regulating Fintech for Sustainable Development in the People’s Republic of China
The rise of fintech in the People's Republic of China is mainly driven by underserved demand for financial services, technological advances, and a supportive regulatory environment.
The rapid rise of financial technology (fintech) in the People’s Republic of China (PRC) inevitably generates financial risks. To prevent and resolve these risks, the government has regulated many fintech application areas, including peer-to-peer lending, third-party payment, cryptocurrency, etc. Additional measures such as financial standardization, infrastructure, and investor protection have also been strengthened to promote sustainable fintech development. The PRC is striking a balance between encouraging fintech innovation and reinforcing regulation. We review both the PRC’s regulations and supportive approaches.