Discussion on Legal Regulation Problem of ROSCA

"ROSCA" is the non-governmental financing mutual aid organization form with oriental tradition. As a folk custom it has a long history and practice in China. However, the current legal system doesn't establish the legal status of ROSCA in China, leading to in different regions and periods, although ROSCA as the financing way in rural areas and small and medium-sized enterprises becomes increasingly intense, it can't get unified and efficient supervision and has frequent risks. Besides the absence of legislation, there are rare theory studies of ROSCA. Under this background, this paper will discuss from the characteristics of ROSCA, and discuss the risk of ROSCA and the importance of its legal regulation, and proposes the reference suggestion how to characterize it in legal norm.