Purpose/SignificanceUnder the background of the rapid development of Fintech, the regulatory sandbox model can effectively find a way for regulators to balance the development of Fintech and financial risks prevention.

Method/processThis paper mainly analyzes the significance of value and the bottleneck encountered in the localization of regulatory sandbox. It finds that under this model, regulators can test innovation, prevent risks and assess whether the existing regulatory rules need to be adjusted, for the purpose of achieving both controllable risks and financial innovation. However, it is still at an early stage of exploration in terms of the specific application of localization and the implementation of countermeasures. There is no mature road map yet.

Results/ConclusionTherefore, this paper argues that the implementation of the "regulatory sandbox" in our country also needs to strengthen the coordination and reorganization, change the regulatory concept, innovate the regulatory tools and enhance the communication and cooperation mechanism so as to improve the regulatory adaptability and improve the functional supervision system. Such is an ideal way for regulators to handle the relationship between financial innovation and risk regulation.