Legal Consideration on the Internet Finance Supervision

Abstract

On March 5, 2014, Premier Li Keqiang submitted the government report deliberated by Twelfth Session, Second Meeting of the National People's Congress, which proposed “accelerate the development of Internet Finance, improve Internet Finance supervision and coordination mechanism, monitor the flow of foreign capital closely, and protect from the systematic and regional finance risks”. It is the first time “Internet Finance” occurred on the official reports. The Central People's Government has sent the message of the encouragement and support on the market innovation, also they accepted that the new Internet Finance industry should be conducted and regulated. The paper first introduces the operational model of Internet Finance, differs it from the traditional finance industry. And then analyzes the current law and explores the endogenous risks, in the hope of searching for better solutions to supervise Internet Finance and accelerate its development.