IMPROVING THE REGULATION OF NATIONAL FINANCIAL MARKETS IN THE CONTEXT OF DIGITALIZATION

Abstract

This article highlights priority areas for improving the regulation of national financial markets in the context of scaling digital transformation processes. The digital transformation of the financial market is fundamentally changing regulatory requirements. The pace of technological innovation—from mobile payments to smart contracts and CBDCs—is significantly outpacing traditional regulatory development cycles. This is forcing regulators to shift from reactive measures to a proactive, iterative policymaking process. Critical areas requiring more effective regulatory tools include legislative, organizational and administrative, innovation, and information technology. The author concludes that the key areas for optimizing financial market functioning focus on relevant changes to the regulatory framework that must promptly respond to the evolution of digital financial technologies, creating conditions to minimize cybersecurity risks in the financial market system, realizing the potential of the digital ruble as a sovereign, sustainable, and barrier-free means of payment, and engaging non-systemic financial market participants. The paper substantiates the relevance of building an effective mechanism for regulating the digital financial market, specifies the basic requirements for regulatory instruments, compliance with which increases the effectiveness of their application, systematizes critical areas for optimizing the functioning of financial markets, taking into account the growing intensification of the integration of digital platform solutions, and identifies priority areas for improving the regulation of national financial markets in the current context of digital transformations.