Author(s)

Weiyi Xia

Shenzhen Fuyuan British American School, Shenzhen, China.

With the rapid development of financial technology, traditional financial regulation faces unprecedented challenges. SupTech (Supervisory Technology), as an emerging regulatory technology concept, is reshaping regulatory theory and practice. This study delves into the challenges and innovative opportunities that SupTech brings to traditional financial regulatory laws. By analyzing the technological characteristics and potential application scenarios of SupTech, the research explores its theoretical advantages in improving regulatory efficiency, reducing compliance costs, and enhancing risk identification capabilities. However, the application of SupTech also raises a series of new theoretical issues such as data security, algorithmic transparency, and regulatory authority. This paper proposes that regulatory agencies need to rethink regulatory philosophy and establish a more flexible and adaptive regulatory framework to balance innovation and stability. Meanwhile, the study emphasizes the importance of strengthening international cooperation and establishing unified standards to promote the healthy development of regulatory technology. The research results indicate that the integration of SupTech and traditional regulation will be an inevitable trend in future financial supervision, but this process requires innovation in regulatory theory and joint efforts from multiple stakeholders. This study provides a theoretical foundation and policy insights for understanding and addressing technological changes in financial regulation.

SupTech, Financial Regulation, Regulatory Technology, Regulatory Innovation, Risk Management

Xia, W. (2024) Challenges and Innovations of SupTech on Traditional Financial Regulatory Laws. Beijing Law Review, 15, 2487-2497. doi: 10.4236/blr.2024.154136.