Legal Risk and Regulation of Peer to Peer Lending Industry in China

Abstract

The peer to peer lending has developed rapidly with its advantages of convenience, high efficiency and low transaction costs since its rise in China in 2007. However, many lending platforms have closed down actively, have difficulty in withdrawing deposit, and escape without connection due to the imperfection of the legal system for risk prevention of the industry. This paper analyzes the existing problems in the standardized peer to peer lending industry, and puts forward some suggestions to promote the deguarantee, strengthen data protection and industry supervision, improve the supporting laws and regulations and perfect the dispute resolution mechanism for the platform in order to promote the sound development of the industry in China. Keywords—peer to peer lending; big data; risk prevention;