Legal Path of Data Compliance and Privacy Protection in Financial Digitalization Transformation under the Emerging Financial Supervision Framework

Abstract

This paper focuses on data compliance and privacy protection under the background of financial digital transformation. Firstly, this paper expounds the present situation of financial digital transformation, and points out that although it brings opportunities such as efficiency improvement, it also brings great challenges to data compliance and privacy protection. Then it analyzes the outstanding problems and causes of data leakage and abuse in current privacy protection. China has established a legal system covering Network Security Law, Data Security Law and Personal Information Protection Law, but there are some defects, such as insufficient coordination of laws and regulations, vague terms, and lagging supervision of emerging technologies. We can learn from international experience such as the EU General Data Protection Regulation (GDPR). In order to improve the data compliance and privacy protection in the financial digital transformation, we should improve the legal and regulatory system (formulate special regulations, improve existing regulations, and follow up technical amendments), strengthen supervision and law enforcement (clarify the division of responsibilities, improve the mechanism and process, and increase penalties), strengthen enterprise self-discipline and compliance management (establish systems, strengthen training, and carry out audit evaluation), and promote industry self-discipline and social co-governance (formulate industry standards, establish self-discipline organizations, and raise public awareness).