Fintech and regtech: Leading the evolution and regulation of alternative investments

Natasha Bansgopaul

Contents

Foreword

Preface

Preface

Introduction: Suptech/regtech defined: Payments, sandboxes and beyond

1.

The uncertain prudential treatment of cryptoassets

2.

US regulatory certainty versus uncertainty for crypto and blockchain

3.

Bermuda: Suptech and regtech supporting the risk-based approach

4.

Suptech: A new era of supervisory philosophy

5.

Cloud computing in the financial sector: A global perspective

6.

DeFi protocol risks: The paradox of cryptofinance

7.

IT transformation in the Prudential Authority of South Africa: A case study

8.

Making the vision a reality: Perspectives from the Monetary Authority of Singapore

9.

Lessons from Hong Kong through the lens of the HKMA

10.

Technological change: Is it different this time?

11.

The ECB’s suptech innovation house: Paving the way for digital transformation of banking supervision

12.

China’s financing opening up and regulatory convergence with the world

13.

Disclosures and market discipline: The promise of regtech

14.

Regtech and new derivatives developments

15.

Fintech and regtech: Leading the evolution and regulation of alternative investments

16.

The role of artificial intelligence and big data in investment management

17.

The promise and challenges of machine learning in finance

18.

Data privacy and alternative data

19.

Digital ID and financial inclusion

20.

Strategic technology: Regulation and innovation of CBDCs

21.

Regulatory sandboxes: Innovation and financial inclusion

22.

Technology and sandbox development innovation in a transitional market: A case study

23.

Developing the regulatory ecosystem: The evolution of stablecoin

24.

Central bank digital currency, regtech and suptech

25.

Digital dollar: Cryptocurrency for everyday commerce

26.

CFTC regtech implications for virtual currency trading

27.

Fintech, regtech, suptech and central bank decision making

Financial technology (fintech) and alternative investments (alts) are two of the most prevalent concepts to have emerged in financial services over recent years. This chapter will promote the view that the development and growth of fintech innovations, as well as regulatory technology (regtech), have been key catalysts for growth in this developing asset class. Resulting new investment opportunities have also evolved with new new-to-industry concepts and delivery asset allocation methods throughout an industry that is historically conservative, slow and hesitant to change.

Figure 15.1

The potential benefits from the utilisation of advances in technological tools and solutions can no longer be ignored. The fintech “boom” has also introduced opportunities for new regulatory oversight solutions and efficiencies in compliance and asset management. However, this growth can only be sustained and supported by the introduction and adoption of corresponding tools aligned to fostering innovation in regtech. For regulators, regtech and supervisory technology (suptech) engender more efficient oversight and investor acceptance of growing asset classes, including alts

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