VAIOT Project Now Regulated Under Maltese Virtual Financial Assets Act

Announcements, News, Regulation | October 27, 2020 By:

AI and blockchain startup VAIOT has announced the successful registration of its whitepaper with the Malta Financial Services Authority (MFSA).

VAIOT combines artificial intelligence and blockchain to create new ways of digitally accessing services and securely concluding legal agreements using a natural user interface. The company enables both businesses and consumers to utilize a set of technologies called Intelligent Contracts. It serves as a personal assistant, available on mobile devices via a simple natural user interface providing AI-based legal services. VAIOT also offers a novel, intelligent service-distribution channel that empowers businesses to adapt to modern customers by providing a new way of accessing services.

In September, the European Union proposed legislation to turn cryptocurrency into a regulated financial instrument. If passed, “Regulation on Markets in Crypto Assets” (MiCA) will apply to all 27 member states, giving passport rights to all regulated crypto companies across the bloc. Malta was the first nation to set a regulatory framework for blockchain back in 2018. The “Blockchain Island” introduced the Maltese Virtual Financial Assets Act (VFAA), by which Malta regulates digital assets. Now, for the first time, a company has successfully registered its whitepaper, marking a milestone for cryptocurrency regulation globally.

According to the new regulatory framework, VAIOT is the first crypto project to receive regulatory approval with the MFSA. The registration of VAIOT’s whitepaper was supported by Grant Thornton Malta, a member of one of the world’s leading organizations of independent audit, tax, and advisory services, which acts as VAIOT’s VFA agent. The VFA Agent verifies, monitors, and provides guidance throughout the whitepaper registration process as well as beyond the offering stage, ensuring its regulatory compliance and acting as a liaison between VAIOT and the MFSA.

“The VFAA regulatory framework requires VAIOT to maintain an external and independent VFA Agent at all times. The process of completing the registration includes extensive due diligence both by the VFA Agent and the MFSA,” the release stated. “Throughout the process, VAIOT was tasked with proving it has proper procedures in place to prevent money laundering and terrorist financing, as well as going through a security audit and smart-contract audit by an authorised Systems Auditor approved by Maltese authorities.”

VAIOT said that the registration paves the way for the future offering of its native token VAI under the robust framework by which the MFSA regulates public offerings of Virtual Financial Assets (VFA). VAIOT plans for its public offering to take place later this year.

“We are thrilled to successfully register our whitepaper with the MFSA,” said Christoph Surgowt, CEO of VAIOT. “The Maltese government has taken major steps towards introducing a clear regulatory framework surrounding IVFAOs. We will be able to offer our token in an ecosystem that will not only support the development and evolution of virtual financial assets and innovative solutions, such as VAIOT, but protect investors and token traders.”