Legal Risk and Prevention of Digital Finance

2023-02-15

Digital finance is a new financial service management mode that combines information technology with traditional financial service industry in the context of the Internet era. It has the advantages of low transaction cost, high efficiency, and diversified participants. At present, it has been integrated into all aspects of people's life. The development of digital finance further reflects the sharing and openness characteristics of financial services in the context of the Internet era, However, neither digital finance nor traditional financial model can be separated from legal supervision and management. Improve the awareness of legal risk prevention of market subjects. With the formulation of legal norms, it is necessary to further enhance the legal awareness of the main body of the digital financial market and give full play to the role of national coordination. First of all, set up a negative list to list the legal red lines and blind spots that may be touched by the digital financial market, improve the legal awareness of market subjects, and prevent the occurrence of illegal issues. Secondly, as the main body of the financial market, we should strengthen the awareness of risk prevention and control, evaluate all kinds of legal risks, and formulate corresponding risk solutions, so as to take precautions and standardize the legal awareness of various participants in the financial market. Finally, as various entities participating in the financial market, we should do a good job in internal risk control, training and formulation of legal systems from personnel training, company internal management and other aspects, strengthen the publicity of digital financial laws and regulations, improve the legal concept of various entities in the financial market through popular ways, and ensure that they participate in digital financial activities in a reasonable and orderly environment. Strengthen the linkage of various departments to build a digital financial risk prevention mechanism. The prevention of legal risks in digital finance can not be separated from the cooperation of various participants. It is necessary to do a good job in legal risk research, judgment and avoidance, both at the national level and at the market level. First of all, build a local joint meeting mechanism to ensure the security of digital finance, clarify the rights and obligations of various regulatory departments and enterprises in the digital finance industry, formulate corresponding work systems and norms, and ensure that each subject performs its own duties. Secondly, give full play to the function of the financial security information service department, further strengthen the contact with the local judicial authorities, financial supervision departments and market supervision departments, build a digital financial information sharing platform, timely report the violations of laws and regulations in digital finance, timely do a good job of information reporting, accelerate the construction of the legal risk prevention and control and resolution mechanism in the digital finance industry, and improve the work efficiency of various departments of digital finance, Effectively manage and control the risks in the digital finance industry in a timely manner. Finally, the judicial and law enforcement departments should strengthen their efforts to crack down on the illegal and criminal acts in the digital financial market, strictly check all kinds of illegal cases, and also collate and compile the illegal cases, so that the masses and financial institutions can learn through the form of cases, and improve their legal risk prevention ability, Avoid illegal and criminal acts due to weak legal concepts. We will improve the access mechanism for financial market participants. First of all, the standardized development of the digital financial market cannot be separated from the compliance of various market entities and good credit evaluation. Therefore, to do a good job of avoiding digital financial risks, high-quality market entities need to participate in the evaluation. The reference index is the legal mechanism of credit rating. Through the evaluation and inspection of the participation of digital financial practitioners

Edit:Ying Ying    Responsible editor:Shen Chen

Source:legaldaily.com

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