According to PYMNTS, Marlene Amstad, Chair of the Swiss Financial Market Supervisory Authority (FINMA) and Chair of the International Organization of Securities Commissions (IOSCO), announced that regulators are accelerating the adoption of AI and regulatory technology (RegTech) tools, including systems specifically designed for crypto market oversight. As the global crypto market expands rapidly, traditional manual supervision struggles to cope with massive on-chain data and real-time price volatility. FINMA's AI-driven transformation provides a blueprint for other regulators worldwide.
Real-Time Crypto Monitoring Dashboard: Identifying Concentration and Operational Risks
FINMA has developed a real-time crypto monitoring dashboard that dynamically combines quarterly reported crypto asset holdings with daily market prices. The dashboard's core functions include identifying excessive concentration of crypto exposure in a single institution and operational risks arising from tokens heavily concentrated on one blockchain. For example, if an institution's crypto assets represent an unusually high proportion of its total assets, or if a token's entire supply is concentrated on a few chains, the system generates alerts. This enables regulators to take preemptive measures, avoiding concentration-driven collapses like FTX.
Generative AI Document Scanning with Double-Check Mechanism
Amstad further revealed that FINMA is developing a new generative AI tool to scan regulatory documents before on-site inspections, automatically flagging anomalies. Crucially, the tool's recommendations are not directly handed to human inspectors; instead, a second independent AI tool reviews them for accuracy before final submission. This "AI suggestion + AI review" double-check mechanism effectively reduces false positive rates from single models and enhances the precision of regulatory decisions. It also reflects Swiss regulators' emphasis on risk control when introducing cutting-edge technologies.
FINMA's AI regulatory deployment not only improves the efficiency of crypto market oversight but also provides a practical case for other global financial regulators exploring the integration of RegTech and AI. As regulatory technology matures, the crypto market may enter an era of greater transparency and real-time compliance.