1、AI Applications in Web3 SupTech and RegTech:A Regulatory PerspectivePrepared byShengliang Lu*,Amritpal Sidhu*,Bingsheng He,Brian Byagaba*,Dmitry Fedotov*,Alejandro Vargas#,Helena Zhang,Barry West*FULL PAPERAbstractThe digital realm is experiencing a transformative shift driven by the emergence of We

2、b3 technologies and virtual assets.This new phase of internet technology leverages distributed ledger technologies and smart contracts while fostering decentralization,increasing transparency,and reducing dependence on intermediaries.Such innovations are pivotal in shaping Decentralized Finance.Howe

3、ver,the rapid adoption of Web3 technologies presents signifjcant risks underscored by high-profjle failures and systemic vulnerabilities.ADGM has developed a conducive regulatory environment through its Financial Services Regulatory Authority(FSRA)by creating a transparent and progressive regulatory

4、 framework aligned with international standards and safeguarding stakeholders interests.This whitepaper explores the integration of AI into regulatory technologies to enhance compliance monitoring and risk management.It details the research and development efgorts by the National University of Singa

5、pores Asian Institute of Digital Finance,ADGM FSRA,and the ADGM Academy Research Centre.The whitepaper concludes with a summary of key fjndings and proposes future collaborative efgorts to further develop the regulatory landscape.Keywords:AI,Cryptocurrency,DeFi,Digital Asset,RegTech,Regulation,SupTe

6、ch,Virtual Asset,Web3 ADGM2Table of ContentsAbstract.21 Introduction.42 Background.63 Opportunities for Utilising AI for Regulating Web3 Activities.74 AI Innovations.84.1 Emerging AI Technologies.94.2 AI Solutions in the Web3 Regulatory Domain.104.3 Challenges in AI Implementation.114.4 Future Direc