The fintech regulatory sandbox in China and experience for Vietnam

Abstract

In recent years, the explosion of financial technology (fintech) has revolutionised the global financial industry. Along with the rapid development of artificial intelligence, fintech has introduced new business models that fundamentally change how transactions, investments, and financial management are conducted. However, alongside the opportunities brought by fintech, many legal issues—such as consumer protection, financial security, managing technology-related risks, and data security—have arisen, posing challenges for countries as they work to improve their legal frameworks. China is one of the countries that have successfully built and implemented regulatory sandboxes for fintech. The study of China's experience in establishing and implementing a controlled regulatory framework for financial technology activities will enable Vietnam to leverage the positive impacts of the new models in the financial sector, especially in balancing between promoting innovation and risk management, contributing to sustainable economic growth and international competitiveness.