Abstract:
The application of regulatory technology (RegTech) in the regulatory field has effectively enhanced China’s financial regulatory capabilities, assisting the market and enterprises in achieving compliance and healthy development, and safeguarding financial security and stability. China’s RegTech has a distinct development path from the West, characterized by its inherent institutional environment, mechanism system, and contractual relationships, which serve financial regulation in a “topdown” manner. However, there are deficiencies in the development of China’s RegTech, such as an imperfect institutional environment, a mismatch between the central and local regulatory technology governance systems, and unclear boundaries between government and market in the application of regulatory technology. To address these shortcomings, it is necessary to strengthen the toplevel design and coordinated planning of regulatory technology, in order to constrain excessive reliance on paternalistic legalism. It is important to harmonize the power and responsibilities of regulatory technology between the central and local levels, optimize the contractual relationships for regulatory technology coordination and cogovernance based on a balanced governmentmarket framework, promote domestic and international cooperation in regulatory technology, and establish standards. These efforts will help enhance China’s ability and level of financial risk governance, and create a Chinese model and reference for the practice of regulatory technology.