Improving state regulation of the innovative segment of the financial market in the context of digitalization

Abstract

The purpose of the study is to substantiate directions for improving state regulation of the innovative segment of the financial market under conditions of digitalization, taking into account the development of digital assets, tokenization, decentralized finance, smart contracts, and digital platforms. The methodological basis of the study comprises systemic, functional, and risk-oriented approaches, as well as methods of analysis, generalization, comparison, and structural-functional modeling. It has been established that digitalization leads to the blurring of traditional boundaries between financial services, technological operations, and digital infrastructure, which necessitates a revision of approaches to state regulation. The key risks of the innovative segment have been identified, including those related to liquidity, leverage, interdependence of digital protocols, technological vulnerabilities, asset concentration, and the cross-border nature of transactions. The feasibility of combining functional and risk-oriented regulation has been substantiated, whereby the intensity of regulatory intervention is determined by the economic function of the activity, its scale, level of risk, and potential systemic impact. It is proposed to expand the information and analytical support of supervision through the use of blockchain analytics, smart contract analysis, and integrated monitoring of transactions and digital asset flows. A differentiated mechanism of state regulation is proposed, providing for enhanced regulatory response as the level of risk, the scale of potential impact, and the interconnectedness of innovative activities with other elements of the financial system increase. The scientific novelty lies in substantiating a structural-functional model of state regulation of the innovative segment of the financial market that provides for the differentiation of regulatory instruments according to the risk profile of financial activities and their potential systemic impact. The practical significance of the results obtained lies in the possibility of their application by public authorities and regulators to improve the regulatory framework for digital financial instruments, modernize financial monitoring, and develop technology-enabled supervision.