ABSTRACT
In China, Big Tech companies are very active in Fintech innovation. Big Tech companies have made lots of contribution to the development of Fintech in China while also bringing lots of regulatory challenges. Big Tech companies should obtain licences before providing any financial service. It is imperative to stress the consistency of regulation, namely, “same business, same risk, same regulation.” In particular, if Big Tech companies engage in deposit and lending business similar to banks, they must meet regulatory requirements similar to banks such as measures specified by the Basel Accord. China should learn from the United States’ regulation on cash management account (CMA). First, incorporating Big Tech companies into the macro-prudential regulation system to maintain market stability. Second, putting various types of business of Big Tech companies under centralized functional regulation according to their core attributes for full coverage. Third, emphasizing customer asset safety, product suitability, information security, and strengthen protection for financial investors.
