*6.4. Reg Tech and Corporate Governance*

RegTech refers to digitized regulation compliance and has been prevalent since the 1990s. Growing investments in blockchain and wide adoption especially in the financial services industry have picked the interest of regulators on evaluating blockchain's potentialin this sphere. Moreover, the global RegTechMarket revenue is expected to reach \$7.2 billion by 2023 (Infoholic Research 2018). However, the majority of existing regulation on blockchain is limited to ICOs, cryptocurrencies and very specific legal issues such as "know your client (KYC)" and "Anti-money-laundering (AML)". The role of RegTech with regard to corporate governance is very clear. Blockchains can provide enhanced security, process digitization, document tracking and internal and external management with regard to regulatory compliance (De Lis 2016). Blockchain has the capability to track and monitor compliance rates at an individual level in a relatively small amount of time. Several RegTech applications track online activities of a firm's employees (Arner et al. 2017). Subsequently, these records compiled can be used to identify adherence to firm rules and other regulations. In addition, these applications can track and monitor irregularities in documents, employee activities and create incident reports (Deloitte 2016).
