The rapid development of internet finance has brought a huge impact to conventional finance. It has also continuously challenged the current financial supervision and regulation. The current financial supervision and regulation are mainly aimed at avoiding predictable and known risks and are based on a summary of the past risks of conventional finance; as an innovative business model

finance's innovative value is reflected in the avoidance of current supervision and regulation

to achieve the purpose of profit-seeking. In the use of current supervision and regulation to deal with internet finance- related issues

there are shortcomings such as insufficient legislation

insufficient impact

and small coverage

which have led to a regulatory vacuum effect and regulatory arbitrage behaviour. The main point of the above-mentioned weak supervision is caused by the conflict between the lag in supervision and regulation and the long theory of internet finance. The supervision of mutual benefit online finance should focus on two levels: innovation protection and risk prevention

and financial consumer protection. With the help of the regulatory sandbox

this balance can be achieved rationally

scientifically

and effectively. This article summarizes the institutional advantages by analysing the value significance

operating mechanism

and extraterritorial experience of the regulatory sandbox

and hopes to bring some reference to China's Internet financial supervision.