Moreover, this risk may be amplified by lack of appreciation for trends in modern technologies;   Second, there is also a danger that the regulators overcompensate against this risk, by adopting too lax an approach, and welcoming all kinds of start-up entities so as not to stifle innovation.
This may be aggravated in  cases where more than one regulator has an interest, a situation which calls for greater collaboration, proper coordination and effective communication. 6  Navigating these risks remains work in progress, with central banks  across  the  world  adopting  a  wide  variety  of  approaches.