Against this backdrop of innovative technologies combined with financial services to form what we call "digital finance", regulators and supervisors are responsible for ensuring the smooth functioning of the markets within their respective mandates and for safeguarding financial stability. Innovation can bring about major changes in the way businesses operate. However, these changes may create new risks or amplify existing ones.
These risks relate to specific aspects of technologies or their application, and in certain cases can effectively be mitigated only with concerted and multi-jurisdictional effort. First and foremost, heavy reliance on technological infrastructures exacerbates cyber security and data protection risks.