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RegTech and SupTech: Building better financial systems

Faced with the evolutions and disruptions caused by fintech, regulators can themselves lean on the emerging fields of RegTech and SupTech to help maintain a resilient, stable and sustainable financial sector.

Over the past 50 years, the financial sector has evolved into one of the most globalized, digitalized and regulated sectors of the world economy. Financial services transformed rapidly following the global financial crisis of 2008, shaped by three interrelated themes: the crisis itself, tremendous increases in regulation, and applications of new technologies smartphones, big data, artificial intelligence, cloud infrastructure and blockchain, among others. 

The evolution in the financial sector has created novel regulatory challenges that demand new approaches to ensure effective oversight. In response, the field of RegTech has emerged. RegTech encompasses technologies specifically designed to address regulatory compliance, financial infrastructure design and regulatory processes. The development of RegTech has been instrumental in helping regulators achieve their objectives as they navigate new and complex landscapes.

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Authors

  • Douglas Arner is the Kerry Holdings Professor in Law, an RGC Senior Fellow, and Associate Dean of the Faculty of Law at The University of Hong Kong. Among other roles, he is also Associate Director of the Standard Chartered Foundation-HKU FinTech Academy, a Senior Visiting Fellow of Melbourne Law School of the University of Melbourne, and co-founder and an executive board member of the Asia Pacific Structured Finance Association. Mr. Arner specializes in economic and financial law, regulation and development, and is the author, co-author or editor of eighteen books, including The RegTech Book (2019) and Reconceptualising Global Finance and its Regulation (2016).

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  • Sangita Gazi is a final year Ph.D. candidate in law at the University of Hong Kong. Her doctoral dissertation focuses on the macro economic effects of central banks’ innovation policies, particularly in relation to central bank digital currencies. Ms. Gazi is an incoming post-doctoral scholar at the University of Pennsylvania’s Wharton Business School, and has published peer-reviewed articles on payment systems, digital currencies, and regulatory and supervisory technologies.

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  • Musheer Ahmed is the founder and managing director of FinStep Asia. Since 2016, Mr. Ahmed has contributed to building the fintech and virtual asset ecosystem in Asia, particularly as the co-founder of the Fintech Association of Hong Kong and as a virtual assets regulator with the Virtual Assets Regulatory Authority of Dubai. He has authored articles and white papers on fintech, blockchain, digital assets, regtech and capital markets for both regulators and private enterprises.

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