Navigating the Legal Frontier: The Intersection of Financial Governance and FinTech

Over the past decade, a gradual shift towards digitalization in finance has merged with datafication and innovative technologies like cloud computing, blockchain, big data, and artificial intelligence, ushering in the era of FinTech (financial technology). This transformation is occurring in established global markets and sometimes even more rapidly in emerging and developing economies. Consequently, cybersecurity and technological risks have evolved into significant threats to both financial stability and national security. Furthermore, the entry of prominent tech companies into the financial realm, known as TechFins, introduces two novel concerns, the first pertains to the emergence of potentially systemically important infrastructure, such as data and cloud service providers, the second revolves around the concentration of data, resembling the finance sector, which possesses economies of scale and network effects, potentially leading to systemic risk through new forms of "Too Big to Fail" and "Too Connected to Fail" scenarios. In conclusion, we propose fundamental principles for monitoring and addressing these risks, with a specific focus on the role of regulatory technology (RegTech).