Regulating Internet Financial Crime in China: Legal Challenges and Responses

Traditional financial services and the Internet are intertwined and converge at the forefront of Internet finance. As the economy develops and the Internet becomes more widely utilised, new financial markets are emerging, leading to a rise in both the frequency and variety of Internet financial crime. However, the slow implementation of criminal law means that some newer financial crimes operate within grey areas of the law. This paper aims to study the legal framework of Internet financial crime in China and examine the current problem. This paper addresses a critical gap in insufficient existing regulations to combat Internet financial crime in China and compares the UK's established FSMA framework to propose specialised legislation in China. This paper adopts a qualitative methodology, such as desk research, in-depth interviews, and focus group discussions. The findings show that China urgently needs a law to curb Internet financial crime. Finally, this paper proposes the Draft of the Internet Financial Crime Law of the People's Republic of China.