Wang Xinyue: Legal environment of internet finance in China

December 12, the world's first large-scale conference to explore the industry Internet, 2014 CVW. The industry Internet conference was held in Beijing and was synchronized through the big screen of New York Times Square. The conference was made by the Asia Letter Group, the cloud base and the Chuang-Zhuang economic and Technological Development zone jointly hosted more than 5,000 global it and traditional industry leaders and elites who are concerned about the development of Internet and traditional industries, and explored the evolution of "Internet access to traditional industries", "traditional industry internet" and the technological model and business innovation of industrial Internet.

In the afternoon of the Financial @ internet forum, Wang Xinyue lawyer made a keynote speech about the legal environment of Chinese Internet finance he understood.

Lawyer Wang: Hello everyone, I have a few good friends in front of the angle is not the same, we are entrepreneurs, more about their own products, talk about the business model of things. My topic sharing is to understand the legal environment of Chinese Internet finance, in particular, I think that when we come back to this point next year, we may find that there are some things that are not quite the same, and it is not very clear that the regulatory policy is in the same position, and that there will be tightening and adjustment in the middle of the law and Regulation policy, Adjustment or encouragement is the keynote, but it will change. So I hope that we can understand the environment of China's Internet finance as a whole.

The companies and entrepreneurs that come today are just the best in Internet finance, they have a strong wind control, they have fewer legal issues and disputes, and other practitioners may encounter this problem and you may have more legal problems doing it. We may talk about these legal issues for two or three hours, but I will be brief today so that we can understand our context on the basis of no comment. When you're involved in a business, what's the point of thinking about it? Today I'm going to focus on a couple of things, a few vague boundaries, and I'm probably impressed when you meet the Internet financial products, the first is direct financing and indirect financing. Internet finance Many people know that there is no specific rules and regulations, but why now the Peer-to-peer or the public, they can get a certain degree of exemption, that is, the regulatory department regardless of you, the judiciary is also encouraging attitude, we have had exchanges, in fact, the emphasis is on direct financing, When you direct financing can get a certain degree of exemption, Peer-to-peer is so, the public is also, the two sides of the direct occurrence of the relationship, you can get a certain degree of exemption. If you do indirect financing, that is, there is a pool of funds, the first large-scale collection of funds, and then invest. Every entrepreneur to see me a lot of times the first question is what, illegal fund-raising, how can I evade illegal fund-raising, strict legal interpretation, internet finance, 80%, 90% of the enterprises are illegal fund-raising, illegal fund-raising large-scale collection of funds from the community to invest.

The second is public and private equity boundaries vague, we do products to have a way of thinking, I myself for many Internet financial enterprises to provide services, these enterprises finally discuss the product when the core where? In fact, the final classification of public offering and private placement in China's regulatory level is not the same. Even many well-known products have this problem, so-called regulatory arbitrage, how they are doing? They put some of the private equity in the public offering, internet finance, the internet itself with a natural openness, with public offering color, so this is also a special attention to the place. Many times we will feel that this is not a legal requirement, actually found that there is a strict violation of the behavior, the private placement of the matter into a public offering, this is the second line of ambiguity, that is, public and private equity boundaries blurred. This thing when you have no statutes, no direct laws, when you see it, you will think of the angle of the discussion on legality, and it is also a regulatory point of view, and regulators often see a lot of internet finance people playing tricks, telling me there are all kinds of ways to circumvent it, but you really and the regulators say, In essence, such as what is called Peer-to-peer, what is called the bank, in fact, the definition is very clear, you can define what is called the bank, but what is called the Peer-to-peer is not very well defined. What is the final regulation? On the one hand, we have to take substantial supervision, so we talk about public and private placement, when it comes to direct and indirect financing, it also includes regulatory risk.

The third I want to talk about is the design to the line on the risk of docking, today this topic is called the Financial @ Internet, many guests with financial related, many guests are also related to the Internet. Our focus is on how to combine finance with the Internet, especially when online. We are now a lot of internet finance is good, the financial Internet is with O2O color, wired on the line under the section, some transactions first generated from the online and then changed to the line, which is my overall encouragement direction. But a lot of trading and consulting saw that the deal was formed early online, and the deal was done offline. But there are a lot of financial institutions, and many of the offline financial institutions, including pawn, factoring, small loans and guarantees, are subject to the sources of funding, so they don't actually raise it, and we become a tool for financial institutions to magnify leverage. There is, in fact, a certain degree of suspicion of regulatory arbitrage, but not a pole to kill, in fact, some regulatory restrictions on funding is also unreasonable, such as the design of the line and offline, how they docking. Some people say that my project source is true, the wind control is very good, but once the problem occurs when you find that the legal document is incomplete, online logic and offline logic is missing. In fact, we see a lot of internet companies, financial and Internet teams are two brains, their docking is also problematic, but also want to remind everyone to notice.

The 4th lecture on the issue of litigation, now in fact, the Internet financial litigation is very few cases, we carry out large-scale research and collection, at present to the court level is still very little, but the future will certainly explode, there will be a lot of complicated things in the future. Internet finance itself is now relatively small internet finance, I have a total loss is one thousand or two thousand yuan how to ask lawyers, so many people in this piece, originally lent a person, this person owes him 100,000, 200,000, he may be in court with you. But now to lend the money to 1000, 10,000 people in court, they are difficult to court with you, but they will defend rights, and such rights are often to criminal push, similar to petitions, litigation outside the dispute resolution mechanism. Don't think they're not very litigious. If you are a business, you have to consider how each lawsuit collection when you do, this should be considered well, today I am quite inspired, listening to the entrepreneur on the wind control means, actually they are equivalent in the commercial design of the legal risk elimination. Is that you realize that legal risk is not going to work. You have to find a way to design the product and the technology and put this thing under control.

There is a problem with a little user data, this is not very clear to everyone, user data and use I think the next year, the two sessions of the two issues, our firm is also in the Central Bank Credit Center service, today I saw many guests in the PPT of the letter, what is called the letter of credit? Do you evaluate the big data? is not included in the central Bank of the management of the credit, including the data, we will provide a lot of internet companies to consult the data, the problem of strange, we suddenly realiz business when there are problems like Facebook will also face such lawsuits, in China did not happen because China does not have a complete protection of personal information legislation, this legislation we understand ten years ago, so long time did not come out, This legislative advantage is constantly strengthening, and relatively to protect the personal information of citizens. And we see the occurrence of some criminal cases, so we do the Internet financial enterprises entrepreneurial or business, or to pay special attention to. Now that the Internet is very fast and the banks are old, but the bank in the information security relative still has done some measures, so in this place everybody also must at this point, the legal risk must have the consciousness, should have the consciousness in the personal user information, this will become the future high dispute lawsuit occurrence point. Litigation we have summed up a lot of classes are not a talk, but the concept is the legal risk is not no, many people think that this piece of law, many people say the internet waiting for the central bank, the SFC, the CBRC will be out of the document, in fact, and people think differently. Before these documents come out, various statutes already have a large number of provisions applicable. For example, Peer-to-peer, loan contracts are traditional civil law, not without legal provisions can be reckless. We see a lot of things like I said about public and private equity, direct financing and indirect financing, you crossed too much he doesn't say you innovate, it's about the risks that you pose. So let's think about it a little more, what I'm doing is innovating, contributing to the innovation of the real economy, or committing something directly, so I'm glad to hear you talk about the combination of the real economy and the real economy. So when you do products, do a good job products, do a good job of the legal issues to straighten out. Legal risk control in the Internet including the later dispute control itself is part of the product, we see a lot of products do very big and prosperous, but the accident is sooner or later, these products are not open to say, but with the economic decline or fluctuations, now very well-known products are exposed to problems, they buried a lot of holes in the contract. This is my key to share with you, in a moment can be exchanged. Don't take the FAThe law assumes that it is only a matter of risk control, the legal representative of the interests of the distribution of things, how to deal with the contract, special lines under the line of the docking specifically to remind everyone to pay attention to, I will share here.

(editor: Mengyishan)