Reed Smith, a global law firm with more than 30 offices in North America, Europe and Asia, has launched an automated compliance platform designed to aid crypto firms navigate the EU’s Markets in Crypto Assets (MiCA) regulations as the bloc enters a fresh phase of cryptocurrency oversight.
The platform, called Aquarius, automates key compliance tasks, including crypto asset classification, regulatory white paper generation, due diligence, and environmental, social and governance (ESG) disclosures. Reed Smith said it plans to expand the platform to support crypto compliance regimes in the UK, UAE, Hong Kong and Singapore.
According to the company, Aquarius aims to simplify MiCA compliance for companies entering the European market or expanding their cryptocurrency offerings in the region by combining automated workflows with legal expertise.
The launch comes shortly after the end of the European Union’s MiCA transition period on July 1, when crypto companies could no longer rely on fleeting national exemptions in countries that had adopted the full grandfathering period. The broad MiCA framework establishes licensing, consumer protection and operational requirements for digital asset service providers across the 27-member EU.
Reed Smith leads the global digital assets practice of the On Chain initiative, advising on several high-profile industry transactions. She served as legal counsel to broker-dealers in Trump Media’s $2.5 billion Bitcoin treasury financing and advised Nakamoto Holdings on its merger with KindlyMD to form a Bitcoin treasury company.
Related: Regulators invited Binance to seek fresh licenses after MiCA failure, says co-CEO
MiCA compliance continues to pose challenges
Despite the harmonized MiCA framework, obtaining authorization remains a sophisticated process for many service operators. Last week, the European Securities and Markets Authority (ESMA) launched a supervisory review of authorized crypto asset service providers, examining how custodians protect client assets and manage operational risks.
According to Sebastien Dessimoz, co-founder and managing partner of digital asset infrastructure provider Taurus, obtaining a MiCA license is just the beginning for custodians who face constant scrutiny of their cybersecurity, governance and ability to protect client assets.
Meanwhile, reports suggest that EU policymakers are considering changes to the MiCA legal framework for stablecoins, including the rules governing the issuance of non-euro stablecoins. According to Euronews, the discussions were partly inspired by the US GENIUS Act, which established a federal framework for payment stablecoins.
Related: Crypto Biz: How stablecoins found their niche
