Research Paper: AI Applications in Web3 SupTech and RegTech: A Regulatory Perspective

The digital realm is experiencing a transformative shift driven by the emergence of Web3 technologies and virtual assets. This new phase of internet technology leverages distributed ledger technologies and smart contracts while fostering decentralization, increasing transparency, and reducing dependence on intermediaries.

Such innovations are pivotal in shaping Decentralized Finance. However, the rapid adoption of Web3 technologies presents significant risks underscored by high-profile failures and systemic vulnerabilities.

ADGM has developed a conducive regulatory environment through its Financial Services Regulatory Authority (FSRA) by creating a transparent and progressive regulatory framework aligned with international standards and safeguarding stakeholders' interests.

This whitepaper explores the integration of AI into regulatory technologies to enhance compliance monitoring and risk management. It details the research and development efforts by the National University of Singapore's Asian Institute of Digital Finance and ADGM FSRA.