Why China Needs to Beef Up Fintech Regulation

Digital finance and the risks of monopoly behavior and abuse of data pose significant challenges to traditional financial regulation

The rapid growth of China’s digital finance industry in recent years, including mobile payments, online lending and the central bank digital currency, has sometimes been chaotic and led to certain systemic risks. Photo: VCG

China has seen rapid development in the digital finance sector in recent years, including mobile payments, online lending and the central bank digital currency. It is now the world’s largest mobile payment market, with more than 1 billion users.

But this growth has sometimes been chaotic and caused certain systemic risks. As a result, antitrust needs to be brought into the scope of China’s financial macroprudential regulatory framework, and coordination of financial and antitrust supervision needs to be strengthened. We need to ensure fair competition and the healthy development of the digital financial market.

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