LEGAL CHAIN

MONEY speaks to legal tech professional DR IAN GAUCI and fintech expert DR ABDALLA KABLAN at multi-disciplinary law firm GTG Advocates & Wyzer, a firm binding law with tech to provide a one-stop-shop for clients in a world where technological developments are constantly pushing the boundaries.

What is it that complements the two entities involved, that of GTG Advocates and Wyzer, to offer corporate, legal, regulatory and technological services under a single umbrella?

The tie between GTG Advocates and Wyzer is nothing more than a representation of the recent developments and intersection in the realm of law and technology. GTG Advocates is a multidisciplinary law firm that has been heavily involved in the technological sector. Dr Ian Gauci, who spearheads Caledo’s legal team, is a leading technology lawyer and was one of the strategic advisors appointed by the Maltese Government on the National Blockchain

Strategy Taskforce. On the the other hand, Wyzer is a fintech company founded in 2017 by a team of technologists lead by Dr Abdalla Kablan specialising in Artificial Intelligence and Blockchain technology. While GTG Advocates focuses on assisting clients with corporate, legal and regulatory aspects, Wyzer focuses on assisting clients with technical advice such as system audits and technical administration, among others.

What role do you see for artificial intelligence in the financial sphere? Has its potential been fully understood?

The modelling of financial systems holds great interest for researchers, investors and policymakers. Many of the characteristics of these systems, however, cannot be adequately captured by traditional approaches to financial modelling. Financial systems are complex, nonlinear, dynamically changing systems in which it is often difficult to identify interdependent variables and values. As a result of this intractability, researchers and investors have turned to artificial intelligence (AI) techniques to better inform their models, creating decision support systems that can help humans better understand complex financial systems such as stock markets.

AI systems are much more efficient in identifying data patterns than humans are, which is beneficial for companies to understand their target audience and gain insight. Despite a lot of positive action towards the use of AI technology as a means of improving our financial sector, not all individuals have shared the same willingness to explore further horizons on such a subject.

Unfortunately, the lack of trust and regulation surrounding AI has decreased its popularity and in turn its use. AI still has a magnificent potential within our society which will only reach its full potential once several socioeconomic hurdles are surpassed.

You describe Caledo as a ‘One-Stop Shop - Bridging the Gap between Law and Tech’. Could you explain what the gap is?

The phrase ‘bridging the gap’ should be understood as the unison of two disciplines, law and tech, which are traditionally considered as independent from one another. Contrary to this common perception, Caledo’s aim is to unite these two areas by running a disruptive technology business with diversified expertise. In a world where technological developments are constantly pushing the boundaries of current legislation, we believe that these two fields working hand in hand can create an eco-system where scientific development can thrive and technology can prosper. Caledo brings together advocates and fintech specialists in order to provide its clients with an exceptional service and a strong one-stopshop environment.

Dr Ian Gauci and Dr Abdalla Kablan

How did the local Blockchain legislation help to create demand? At the EY conference last autumn, some speakers urged the government to refine its strategy with regards to some specific regulatory and proprietary issues. What do you think still needs to be done?

Malta is officially the first country in the world to introduce a holistic legislative framework regulating Blockchain technologies. Unfortunately, the crypto world has been receiving a plethora of negative remarks with regards to the amounts of scams associated with crypto-related activities and ICOs. Luckily, the scope of having legislation as we do in Malta is to avoid such situations from unfolding. The law sets the bar high and as a result this attracts serious, professional innovators, making it reasonably difficult for scammers to set foot on our shores. Of course, being a pioneer in the field is no easy feat. One must try regulating the industry responsibly yet also reasonably in the sense that one must not stifle innovation.

Malta has opted to be an innovator in this field — rather than learning from the mistakes of others. That could prove to be a risky strategy. Are you convinced that it can stay one step ahead of problems?

Even though Malta has been a pioneer in the field, it would be foolish to think that everything will be plain sailing. To date, the Malta Financial Services Authority (MFSA) is still in the process of issuing licences to VFA Agents who, in turn, will assist and advise clients with the application for the full VFA Service Providers licence. The proof of the pudding is in the eating and it is only a matter of time until we can see whether all the progress achieved so far will reap the rewards the industry deserves.

THE PHRASE ‘BRIDGING THE GAP’ SHOULD BE UNDERSTOOD AS THE UNISON OF TWO DISCIPLINES, LAW AND TECH, WHICH ARE TRADITIONALLY CONSIDERED AS INDEPENDENT FROM ONE ANOTHER.

You have already started to take part in conferences and roadshows overseas. What has the reaction been to Malta having been dubbed the Blockchain Island?

The general reaction is excitement and curiosity as to how such a small island in the middle of the Mediterranean has managed to take such a strong leap forward in terms of innovation and regulation. The element of scepticism remains, especially when it comes to banks. This is strongly overpowered by the sense of passion and commitment that is common among most of our European and non-European friends and colleagues who believe in our framework and seemingly share the same vision to make Malta become a true Blockchain Island.

We plan to be ambassadors and role models of the Maltese entrepreneurial spirit and ingenuity. Caledo will be participating in prime events like the Malta AI & BC Summits and in the international arena where both of us have been invited to participate, in the past years. Caledo was born during the DELTA Summit last year, and we plan to celebrate our anniversary in style this October with all the local and international community during the second edition of Malta’s digital innovation event, The DELTA Summit 2019.