Coordinating Financial Regulation and Financial Technology of China: Current State and Internal Mechanisms

Abstract

With the rapid development of financial technology innovation globally, the efficiency and accessibility of financial services have been significantly improved. However, it has also brought about new security risks, impacting traditional financial regulatory models. This paper studies the internal mechanism and current state of the coordination between China's financial regulation and financial technology. Firstly, it discusses the dynamic evolution of financial regulation and financial technology, that is, financial technology has penetrated from basic services to core areas, promoting the digital transformation of the industry, while regulation has shifted from passive adaptation to active coordination. Secondly, it studies the internal mechanism of their synergistic effect, which is the complementarity of technology and rules, and their coordination path has gone through the evolution from passive adaptation, active coordination to ecological coordination. Finally, focusing on the Chinese context, it is found that the current state of their coordination presents the dual-track characteristics of "pilot exploration + institutional improvement". For the future practical path, it includes building a dynamic regulatory system, strengthening the empowerment of regulatory technology, and drawing on the regulatory sandbox experience of countries such as the United Kingdom and Singapore.