What is RegFi?

What is RegFi?

Pacioli.ai
3 min readAug 18, 2024

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RegFi, short for Regulatory Finance or Regulation Finance, is a decentralized physical infrastructure network (DePIN) focused on providing regulatory compliance verification through decentralized validation mechanisms. It operates as a protocol where users, including organizations or individuals requiring verification of compliance, can stake value and pay for the services they need. This is the demand side of RegFi.

On the supply side of RegFi, those providing the verification or validation services must also stake value to qualify as validators that provide proof of compliance. Validators on the network use sophisticated software that automates compliance verification.

This decentralized approach is suitable for the crypto-asset ecosystem as more regulatory frameworks are introduced in each jurisdiction. It ensures that compliance services are handled transparently, securely, and efficiently and in an automated manner, removing reliance on traditional centralized processes and service providers. Instead, it leverages a decentralized network where validators, who each stake value, are rewarded for providing compliance validation.

This system of checks and balances enhances the trustworthiness of the compliance process, as every validator has a stake in ensuring accurate and timely proof of compliance.

The introduction of the Markets in Crypto Assets Regulation in the European Union, referred to as “MiCA” and the Virtual Assets Regulatory Authority in Dubai, referred to as “VARA” are prime examples of clear and forward thinking regulatory frameworks for the regulation of all kinds of crypto-assets. Stakeholders in the crypto asset ecosystem are now obligated to adhere to these regulations if they want access to these markets.

Pacioli.ai is RegFi

Pacioli.ai is unique in this ecosystem as the only existing RegFi infrastructure. It stands out by providing compliance tools and automating compliance verification, ensuring that the crypto-asset ecosystem can meet regulatory standards in an automated, decentralized and scalable manner.

Under MiCA and VARA, technical disclosure specifications for crypto assets are very similar to the technical disclosure specifications of issuers of securities in 60 other major jurisdictions.

Pacioli.ai features tools that create machine readable white papers in the iXBRL format. The Pacioli.ai white paper is the world’s first example. It also features a logic and reasoning engine called the Pacioli AI Validating Node that reads, understands and detects inconsistencies in these disclosures.

By participating in Pacioli.ai, users not only achieve the necessary compliance but can submit iXBRL white papers to Pacioli.ai for proof of compliance. Each stakeholder can contribute to the broader crypto-asset ecosystem that aligns and incentivizes transparency and accountability in regulatory processes​​.

A limited supply of Pacioli AI Validating Nodes are available in the Initial Node Offering. APPLY NOW to reserve your place in the dawn of the #RegFi economy.

About Pacioli.ai

Pacioli.ai is a decentralized physical infrastructure, (DePIN) that enables crypto-asset issuers and service providers to collaborate, create and externally validate machine readable white papers as well as financial and sustainability disclosure documents pursuant to emerging crypto-asset regulatory requirements and technical specifications.

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Pacioli.ai
Pacioli.ai

Written by Pacioli.ai

Pacioli.ai is the world's first and only web3 crypto asset disclosure and AI based external validation DePIN (decentralized physical infrastructure) protocol.

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