Abstract: The rapid development of digital finance has not only improved the efficiency of financial operation, but also brought new risks. From the theoretical perspective, digital finance has two kinds of effects on the regional financial risks in China: aggravating and mitigating. The regional financial risk index from 2011 to 2020 is obtained by constructing the regional financial risk measurement index system and empowering with entropy method. On this basis, the panel model and spatial Dubin model are used to demonstrate the influence of digital finance on regional financial risks. The results show that digital finance can significantly inhibit regional financial risks, and the inhibition has regional and time heterogeneity. Digital finance has a spatial spillover effect on regional financial risks. Finally, it proposes to improve the operation mechanism of digital finance, and set up digital financial supervision institutions; optimize resources allocation and broaden the spatial spillover channel of digital finance; implement a differentiated regional development strategy and enhance overall risk response capability. Finally, it is proposed to improve the operation mechanism of digital finance and set up digital financial supervision institutions; optimize the allocation of resources and broaden the spatial spillover channel of digital finance; implement differentiated regional development strategies and enhance overall risk response capability.