Rethinking the regulatory approaches of the Fourth Industrial Revolution
The mass adoption of Fourth Industrial Revolution (4IR) technologies has the potential to cause an even larger-than-expected transition to a new taxonomy related to other fields. aspects of human life, including finance and markets. New technologies are creating new concepts, systems and frameworks, such as driverless cars, drone delivery and central bank digital currency (CBDC). In the near future, the role of technology in our society will extend beyond the boundaries of a basic subsystem, where its regulation will be assigned to stakeholders or the market itself.
An ongoing theme of this short submission is the currently changing approaches to technology risk regulation following the rapid transition to wholesale-grade leverage and mass adoption of the technology. I am inclined to believe that effective regulatory design for new technologies adopted by the Fourth Industrial Revolution currently underway must first consider the preconditions as set forth. dominated by concepts of product design, public perception of technology risk, and social benefit versus technology risk.
Pavel Kulikov is a partner of PLL Legal & CBP in Zürich, Switzerland, advising startups and large companies on matters of financial market regulation, compliance and private equity. His academic works on the New Classification for Technological Regulation in Financial Markets; DLT and fintech regulatory reforms are often cited on both sides of the Atlantic. Pavel is also the author and host of the popular LegalTask show on the Swiss TV channel.