This means that in the light of new FinTech risks, the current supervisory frameworks will evolve in a manner that ensures appropriate oversight of banking and non-banking service provider’s activity as well as new payment systems based on DLT solutions while avoiding innovation hindering. Different countries may follow different supervisory regimes, which includes direct oversight of the new market players, then establishing innovation hubs, accelerators and regulatory sandboxes. The role of Regtech in enhancing regulatory and compliance challenges Digital finance raises new risks and new areas of vulnerability might develop because of new financial products (virtual cryptocurrencies) and new technologies (distributed ledger based on anonymous users and on decentralized governance without accountability). Digital finance gives rise to an increasing number of financial players and eases cross-border transactions, which makes the monitoring of transactions more complex for financial institutions and public authorities. Finally, while new financial players are reshaping the financial sector, they may be outside the scope of banking sector regulation and subject to less stringent AML/CFT rules than are banks. New technologies may support greater efficiency for staying compliant. Regtech companies are especially keen to provide banks with more effective ways to improve their compliance and risk management, through outsourcing or insourcing processes. They may open up opportunities for digital transformation of control and support functions within banks (risk, compliance, legal, finance, IT). Regtech could address a wide array of requirements related to regulatory reporting, financial crime, operational risk (including cyber-security and fraud detection), consumer protection and data protection regulation.

One potential benefit of DLT-based structures is immediate clearing and settlement of securities, in contrast to the multiple-day lags that currently exist when exchanging cash for securities (and vice versa). Progress in this direction was recently achieved by a joint venture between the Deutsche Bundesbank and Deutsche Börse, which developed a functional prototype of a DLT based securities settlement platform that achieves delivery-versus-payment settlement of digital coins and securities (Deutsche Bundesbank (2016)). Whether or not a central bank should provide a digital alternative to cash is most pressing in 4/5  BIS central bankers' speeches  countries, such as Sweden, where cash usage is rapidly declining. But all central banks may eventually have to decide whether issuing CBCCs makes sense in their own context. In making this decision, central banks will have to consider not only consumer preferences for privacy and possible efficiency gains – in terms of payments, clearing and settlement – but also the risks it may entail for the financial system and the wider economy, as well as any implications for monetary policy. Some of the risks are currently hard to assess. For instance, at present very little can be said about the cyber-resilience of CBCCs, something not touched upon in this short feature. In this context, the current regulatory framework predate the emergence of FinTech companies. Therefore, it will certainly be changed and as a matter of fact it is already an evolving process in many countries, including Macedonia.