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Md Delwar Hossain
May 07, 2022
In Welcome to the Forum
From laissez-faire development to regulatory sandbox Let's look at the country. Since the reform and opening up, we have Special Database become accustomed to "crossing the river by feeling the stones". This model does not preset thresholds, but intervenes more, which is more efficient than FCA's regulatory sandbox. However, the financial sector cannot tolerate the laissez-faire innovation of "freedom of all kinds of frost and sky competition", which will inevitably lead to problems, which are manifested in three aspects: Products are virtual, digital, and easy Special Database to diffuse. Often, the risk exposure has not yet been reached, and the scale is already large, and it is difficult to achieve a controllable pilot. Risk concealment is strong. Wealth management business, if the capital pool is operated by the side of the capital, it will not be Special Database a problem for a few years to operate; for loan business, as long as it is allowed to borrow new and repay the old snowball, the borrower will be zero bad, no matter how bad it is, it is an illusion . Dealing with money can easily lead to moral hazard. Many entrepreneurs with pure nature are ultimately Special Database unable to resist the "temptation" of money; not to mention that there are people of all kinds who deliberately deceive in the name of finance. Before 2016, Internet finance grew freely, and there were indeed many problems. Laissez-faire is easy to cause problems, and the threshold for pilot licenses like consumer finance companies, private Special Database banks, and personal credit reporting is too high. Therefore, fintech needs a lighter regulatory sandbox. But FCA's sandbox also has limitations, and we need to explore our own regulatory sandbox. Before that, several issues need to be clarified. 1. Examine the boundaries of finance With the integration of finance and scenarios, scenario parties are increasingly embedded in the financial process. In many cases, the business behavior Special Database of scenario parties overlaps with financial services provided by financial institutions, and the boundaries become more and more blurred.
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Md Delwar Hossain

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