Public Consultation on Draft "Financial Law" Concludes, with Minimal Coverage on Legal Status of Digital Currency and Regulatory Boundaries for Crypto Assets

Odaily According to Caixin News, the one-month public consultation on the draft "Financial Law of the People's Republic of China" concluded today (April 19). This is the first overarching law in China, and indeed globally, to be named after finance. The expansion of "quasi-judicial powers" granted to financial regulators under the draft is a topic of high market concern. According to the design of Article 55 and related provisions, financial regulatory authorities, when investigating financial violations, have the right to access and copy property rights information, communication records, and transaction records of relevant entities and individuals. If there is evidence suggesting the transfer or concealment of illegal funds or securities, they can directly freeze or seize them. Furthermore, they can even decide that parties suspected of violations cannot leave the country during the investigation period.

Additionally, Zeng Gang, Chief Expert and Director of the Shanghai Finance and Development Laboratory, believes that the "Financial Law" should also strengthen its focus on and coverage of emerging financial formats. Issues such as AI-driven financial decision-making, the legal status of digital currencies, and the regulatory boundaries for crypto assets, which have sparked widespread debate globally, are minimally addressed in the draft. How to maintain a dynamic balance between regulation according to law and inclusive innovation remains an unresolved question left by the legislation.