Ispire Bets on Age-Verification Technology as Regulators Weigh New Rules for Vaping Devices

What this could mean for investors and the industry 👇

A small U.S.-listed vaping-technology company is positioning itself for what it sees as a regulatory turning point in the global e-cigarette market, the possible adoption of mandatory age-verification technology at the device level.

Ispire Technology Inc.,(ISPR) a manufacturer of vaping hardware with operations in China and Malaysia, is seeking regulatory approval for a biometric age-gating system designed to prevent underage use of e-cigarettes, according to Michael Wang, co-chief executive officer of Ispire Technology Inc. “We historically have been the leader in introducing new vaporization technologies to the industry,” he said. “More recently, we got into what we call age verification or age-gating technology as well.”

In an interview with AInvest's Capital & Power Wang pointed out that Ispire's age-gating technology, which combines identity verification, facial recognition and blockchain-based hardware, is currently under review by regulators in several countries, including the U.S.

Under the proposed system, a vaping device would remain inoperable until the user completes an identity check through a smartphone application. According to Wang, the process requires scanning a government-issued ID, submitting a facial image and passing verification through third-party identity providers such as CLEAR. Once approved, the system sends a digital token to the device, allowing it to operate.

The company argues that device-level controls could address a longstanding regulatory concern that age checks at retail are insufficient once a product changes hands. “You could be old enough to buy the device,” Wang said. “But if you pass it down to another user, that user will have to go through a very quick verification again.”

Ispire has not yet received approval to deploy the technology commercially. Wang said the company has been engaged with the U.S. Food and Drug Administration’s Center for Tobacco Products for roughly a year and submitted what he described as a “technology solution PMTA [premarket tobacco product application]" in late May, following a clinical trial conducted between January and April. According to Wang, the trial achieved a 100% success rate among randomly selected adult users, who were able to complete verification without instruction.

Regulatory timelines remain uncertain. “Exactly by what time we would get approval, I can’t say right now,” Wang said, though he added that the company is “hoping for early 2026.” He also said Ispire is working with regulators in the U.K., Malaysia and other countries, noting that some jurisdictions may move faster than the U.S. At least two countries, he said, are considering mandating age-gating technology for all e-cigarette sales.

Industry interest has increased following recent remarks by senior FDA officials. Wang cited comments made in late October at a Food and Drug Law Institute conference in Washington, D.C., where Brett Kaplow, acting director of the FDA’s Center for Tobacco Products, said that point-of-use age-gating technology could be a pathway to allowing flavored e-cigarettes for adults. Wang said those remarks triggered inbound inquiries from large, mid-size and small tobacco companies seeking access to Ispire’s technology.

Ispire currently does not sell branded nicotine vaping products in the U.S. because of the FDA’s premarket tobacco application requirements. Instead, the company aims to operate domestically as a technology and licensing provider. Outside the U.S., particularly in Europe, it does sell branded devices, Wang said.

While the company sees broader applications for its verification technology—including firearms and pharmaceutical delivery devices—its near-term focus remains on vaping regulation. Approval of the system, Wang said, would represent “a very important milestone for the company.”