China's Financial Law Draft Consultation Ends; Digital Currency Legal Status, Crypto Asset Regulation Largely Absent

Gate News message, April 19 — China's first-ever comprehensive financial law, the Financial Law (Draft), concluded a month-long public consultation period today (April 19), marking the first such unified financial legislation globally, according to Caixin. The draft has drawn significant market attention for expanding financial regulators' "quasi-judicial powers."

Under Article 55 and related provisions, financial authorities are granted broad investigative powers, including access to and copying of financial records, communication logs, and transaction data of entities and individuals. The draft also allows regulators to directly freeze or seal assets when evidence suggests illegal fund or securities transfers, and to restrict suspected violators from leaving the country during investigations.

Zeng Gang, chief expert and director of the Shanghai Institute of Financial and Development, noted that the Financial Law should strengthen coverage of emerging financial sectors. Issues including AI-driven financial decision-making, the legal status of digital currencies, and regulatory boundaries for crypto assets—topics generating widespread global controversy—receive minimal attention in the draft. He highlighted that balancing regulatory enforcement with innovation tolerance remains an unresolved challenge for legislators.