Regtech is changing, thriving on new technologies, approaches, and challenges or new approaches. Such trends will also dominate the industry in the upcoming years. However, from a 2023 perspective, specific strategies may assume more significance than others.
“As we look further into 2023 and beyond, we can expect the regulation of broker-dealers and investment advisors to continue to evolve with the shifting business practices. Specifically, we expect that the regulations will be shaped by several factors, both past and present, including the increase of virtual currency activities within the traditional financial services ecosystem, continued focus on ESG, and the implementation of the SEC’s new marketing rule,” says Mark Roszak, Regulatory and compliance advisor.
The SEC’s 2023 section of tests examination priorities emphasizes the new marketing rules and their importance in upcoming trials.
Compliance teams will anticipate that RegTech will handle cryptocurrency alongside other assets without necessitating platform transfers.
Interest in potential growth opportunities in highly sought-after fields, particularly for digital assets, is expected to increase.
Regulator non-compliance can result in penalties, damage to one’s reputation, and legal action. Compliance used to be a labor-intensive and manual procedure. On the other side, the growth of regtech has improved the effectiveness and efficiency of compliance.
Artificial intelligence and machine learning; these two technologies are revolutionizing the regtech industry. The use of blockchain technology is helping to reduce fraud and boost compliance.