One of the first of the few countries in the EU to introduce an organized regulatory framework was Malta, which in 2018 set out to regulate Virtual Financial Assets and Initial Virtual Financial Assets Offerings (IVFAO) as methods of raising funds. Now, for the first time, successful registration of a project’s whitepaper under the VFA Act has occurred, marking a milestone for cryptocurrency regulation.
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. 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 authorized Systems Auditor approved by Maltese authorities.
“We are thrilled to successfully register our whitepaper with the MFSA,” says 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.”
“It’s always exciting to break new ground,” says Dr. Wayne Pisani, partner responsible for regulatory and compliance services at Grant Thornton. “VAIOT is pioneering one of the first IVFAOs, pushing forward a novel asset class in addition to its product. We look forward to engaging with, assisting, and advising the industry, as well as influencing the debate over how these virtual assistants and digital financial assets will evolve going forward.”