TechFlow News, April 19: According to Caixin, the one-month public consultation period for the “Draft Financial Law of the People’s Republic of China” concluded today (April 19). This marks China’s—and the world’s—first overarching law named specifically after “finance.” A key issue drawing significant market attention is the proposed expansion of quasi-judicial powers granted to financial regulators under the draft. Per Article 55 and related provisions, financial regulatory authorities, when investigating financial violations, may access and copy property rights information, communication records, and transaction records of relevant entities and individuals; where evidence exists indicating that illicit funds or securities are being transferred or concealed, authorities may directly freeze or seal such assets; and in cases involving suspected violators, authorities may even prohibit them from leaving the country during the investigation.
Additionally, Zeng Gang, Chief Expert and Director of the Shanghai Financial Development Lab, noted that the “Financial Law” should further strengthen its focus on and coverage of emerging financial sectors. Issues—including AI-driven financial decision-making, the legal status of digital currencies, and the regulatory boundaries for crypto assets—have sparked widespread global debate, yet the draft addresses them only minimally. Striking a dynamic balance between rule-based regulation and innovation-friendly policies remains an unresolved challenge posed by this legislation.
