The necessary of industry associations to be empowered to implement a regulatory sandbox
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DOI: 10.23977/fmess2020.058
Author(s)
Cao Xiong, and Xiaohui Chen
Corresponding Author
Cao Xiong
ABSTRACT
In recent years, more and more countries and regions have introduced regulatory sandboxes to promote the development of fintech in their countries. This method serves as a useful supplement to financial supervision. Industry associations must be empowered to implement regulatory sandboxes to assist regulators in implementing sandbox supervision of financial technology ? Based on the theory of corporate political action and government-led theory, theoretical analysis and research hypothesis are put forward to study the aforementioned issues. The research results show that the role of industry associations in the development of fintech is high in quantity and low in quality. The lack of a complete and accurate understanding of the business model, overall risk and specific risk points of the industry is an important reason. Therefore, it is necessary for regulators to authorize industry associations to implement a regulatory sandbox. This article allows them to closely observe FinTech innovations and their risks, forming a complete and accurate understanding. This method can ensure the high-quality development of fintech in China.
KEYWORDS
Industry Associations, Regulatory Sandbox, FinTech Innovation, Quantity and Quality