Revolutionising Rulemaking: How Digitised Rules Can Accelerate Digital Transformation

Contemporary systems of regulation do not work- for regulators, firms, or consumers-because they are outdated, time-consuming, costly, resource-intensive, and ineffective. Digitising rules can kickstart the modernisation of the rulemaking process and enable countries to create regulations that work. Regulatory technology (RegTech) applies technology to reframe rules as code instead of natural language. A key challenge with this technology is how to navigate increased technological reliance in an increasingly globalised economy. This is where the G20 is important. The G20 has already demonstrated interest in RegTech as recently as in 2020. Now, it can push efforts in its member countries by leveraging its position as a global convening ground to encourage national pilots, international collaboration, and multilateral implementation. Stakeholders across the board stand to gain. Regulators can identify the most egregious cases of non-compliance by learning from other jurisdictions, thus preventing a game of whack-a-mole. Firms can lower the increasingly high compliance costs of doing business and explore new areas of expansion. Consumers benefit from increased competition due to lower entry barriers.