- VAIOT launches the Digital Assets Regulation Institute (DARI) to create regulatory standards for the crypto industry.
- DARI is co-founded by KuCoin Labs and supported by Grant Thornton Malta’s tax, regulatory, and compliance practice.
- The think tank aims to gather relevant stakeholders, conduct extensive research and produce reports that will inform global government policy on crypto regulation.
KuCoin Labs and VAIOT, a blockchain and AI-powered services company, launched a think tank on Tuesday to promote crypto regulation informed by industry experts’ perspectives.
VAIOT hopes to position its new Digital Assets Regulation Institute (DARI) at the forefront of establishing regulatory clarity in an industry that has not been able to work with regulators effectively enough since September 2020, under strict Maltese legal scrutiny and with oversight exercised by leading accounting and advisory firm Grant Thornton.
DARI will bring together relevant stakeholders, including regulated companies and projects seeking regulation, as well as consulting firms, financial and security auditors, accounting firms, law firms, and venture capitalists, to conduct research and produce reports that will inform government policy around the world.
According to Pawel Andruszkiewicz, COO of VAIOT and President of DARI, “No one cares about regulations during a bull run when money is being tossed around, and investors are making massive gains. It’s when everything crashed and burned a few months ago that people came to understand the value of companies like VAIOT that comply with stringent regulations. It’s our goal at DARI to ensure effective regulation is at the forefront of how we think about this industry going forward.”
The launch comes after the Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and its founder, Changpeng Zhao, on Monday, alleging the company knowingly offered unregistered crypto derivatives products in the United States in violation of federal law. The CFTC’s lawsuit against the world’s largest cryptocurrency exchange is just the most recent in a long line of actions U.S. regulators took against large crypto companies in an uncertain regulatory environment.
The collapse of FTX—the former symbol of legitimacy in digital assets—stalled the advancement of coherent U.S. crypto regulation because Sam Bankman-Fried, the disgraced former CEO of the company, had been involved in working with regulators to craft new rules behind the scenes.
“We’ve been hearing about governments working on regulation for digital assets for years now, said Wayne Pisani, Partner and Head of Tax, Regulatory, and Compliance at Grant Thornton. “But part of the problem is being developed behind the scenes. Effective regulation requires bottom-up initiative, where companies and entities working within regulatory frameworks can share their opinions and expertise with regulators in a public manner. That’s what DARI is aiming to bring to the industry.”
DARI is also supported by Grant Thornton Malta’s tax, regulatory, and compliance practice members.
KuCoin Labs, the investment and research firm spun out of cryptocurrency exchange KuCoin, brings to DARI significant experience in Web3 project research and incubation based on strict selection criteria and vetting. KuCoin Labs is known for bringing together internal and external market leaders from various project development segments.
“It is particularly crucial to join as strong an industry force as possible to ensure an optimal development condition for future crypto builders and users,” said Lou YU, Head of KuCoin Labs and vice-president to DARI. “We hope to create regulatory synergies among countries and markets, shouldering the fundamental ideologies of crypto and making them relevant and tangible to all participants. DARI will put efforts into submitting an official proposal to the European Commission and is enthusiastic about engaging in regulatory hearings with the relevant European institutions.”
Projects seeking regulation will be able to participate in consultation and incubation with DARI’s institutional partners, who will act as consultants for the think tank.
