Adaptive Regulatory Framework for Digital Securities Based on Business Model Evolution
From crypto assets to digital securities,the evolution of the industry has addressed the critical flaw of products lacking tangible asset support and the unsustainable business model reliant on continuous investor inflows to reward early participants.The structural transformation of the market's fundamental conditions has prompted overseas regulators to adhere to the functional regulation concept,incorporate digital securities into security legal system for regulation and supervision,and gradually facilitate the tokenization and distributed ledger technology as new financial infrastructures to conduct regulatory experiments on security tokenization,aiming to realize the technological transformation in security issuance and trading models.Under this backdrop,given the cross-regional nature of distributed ledger technology,China's discretionary reaulatory approach while observing market development to make timely regulatory responses.It is not only unable to effectively cope with the spillover effects of risks from the overseas market,but also suffers from issues related to the pace of regulation.This approach risks leaving China's financial development and institutional competition in a passive and lagging position.Based on the assessment that the risks in the digital security market are relatively controllable and have similar economic functions to the traditional security market,China's regulatory agencies should start with traditional security tokenization follow the concept of functional regulation and apply the traditional security regulatory framework to the digital security market through a rule-expansion regulatory approach.Furthermore,they should make adaptive adjustments to legal rules based on experimental regulatory outcomes,forming an adaptive regulatory model that evolves in tandem with the digital security industry.
Digital SecuritiesSecurity TokenizationFintechAdaptive RegulationFunctional Regulation
万方数据
维普
