The financial regulatory system in China remains to be sub-industry supervision with “ one bank and three commissions” structure, which refers to the People’s Bank of China(PBOC), the China Banking Regulatory Commission(CBRC), the China Securities Commission (CSRC) and the China Insurance Regulatory Commission(CIRC). Such regulatory design leads to two difficult situations. First is the overlapping of regulation: if a bank gets involved in securities business, the bank must follow guidance and regulation from two authorities. Second is the opposite: the absence of regulation. Some new financial business model (like some internet “Wealth Management Company”) that intersects into various sectors requires coordination of two or more authorities, which often results in a grey or vacuum area of regulation.
http://news.8btc.com/china-financial-conference-provides-outlook-for-regulatory-environment-of-cryptocurrency
