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Regulating Internet Financial Crime in China: Legal Challenges and Responses

Author

Listed:
  • Xinxin Mao
  • Hanna Binti Ambaras Khan
  • Suhaimi Bin Ab. Rahman

Abstract

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.

Suggested Citation

  • Xinxin Mao & Hanna Binti Ambaras Khan & Suhaimi Bin Ab. Rahman, 2025. "Regulating Internet Financial Crime in China: Legal Challenges and Responses," Business Management and Strategy, Macrothink Institute, vol. 16(2), pages 166-187, December.
    • Handle: RePEc:mth:bmsmti:v:16:y:2025:i:2:p:166-187
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    References listed on IDEAS

    as
    1. Christian Haddad & Lars Hornuf, 2019. "The emergence of the global fintech market: economic and technological determinants," Small Business Economics, Springer, vol. 53(1), pages 81-105, June.
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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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