Evolution and Innovation on China’s Legal System of Internet Finance in the Context of Blockchain Technology

Abstract

With the growing popularity of bitcoin, blockchain technology, as its underlying technology, has gained more and more attention. The technical innovation brought by blockchain technology such as decentralization and strong trust mechanism coincides with the nature of finance, which brings a new variable to the development of Internet finance, promotes the innovation in financial products and accelerates the development of mixed operation. At the same time, however, China’s current legal system of Internet finance is impacted by digital finance, which presents difficulties such as weakening the main bodies of financial regulation, confusing the objects of financial regulation and making it more difficult to protect financial consumers. Therefore, in the application of digital finance technology such as blockchain technology, Internet finance laws need to change the path of institutional evolution to meet the regulatory requirements brought by new technologies. The reform and impact of blockchain technology are promoting the transformation of Internet financial regulation mode from separate institutional regulation to functional regulation, from institutional regulation to technological regulation, and from monocentric regulation to multicentric regulation, as well as the transformation of the financial consumer protection mechanism.