Global law firm launches MiCA tool as EU crypto rules tighten
Reed Smith, a global law firm with more than 30 offices across North America, Europe and Asia, has launched Aquarius, an automated compliance platform built for the European Union's Markets in Crypto-Assets (MiCA) regulation. The rollout arrives as crypto companies lose temporary national exemptions and face full licensing, consumer protection, and operational requirements across the 27-member bloc.
Key Takeaways
- Reed Smith's Aquarius automates MiCA tasks including asset classification, white paper generation, due diligence, and ESG disclosures.
- The EU's MiCA transition period ended July 1, ending grandfathering exemptions that some national regulators had allowed.
- Reed Smith plans to expand Aquarius beyond the EU to the UK, UAE, Hong Kong, and Singapore.
- ESMA recently opened a supervisory review of authorized crypto-asset service providers on custody and operational risk.
- EU policymakers are reportedly weighing revisions to MiCA's stablecoin rules, partly influenced by the U.S. GENIUS Act.
What did the global law firm launch for MiCA compliance?
Reed Smith introduced Aquarius to streamline recurring regulatory work for crypto-asset issuers and service providers entering or expanding in Europe. The platform automates crypto-asset classification, regulatory white paper generation, due diligence, and environmental, social and governance (ESG) disclosures.
According to the firm, Aquarius combines automated workflows with legal expertise to simplify compliance for companies navigating MiCA's licensing and disclosure demands. Demand for dedicated MiCA compliance tools has grown as firms move past transitional rules and into full enforcement.
Why does Aquarius matter now that MiCA's transition period has ended?
The launch follows the European Union's July 1 cutoff, when crypto companies could no longer rely on temporary national exemptions in countries that adopted the full grandfathering period. MiCA now sets harmonized licensing, consumer protection, and operational standards for digital asset service providers across the EU.
Even with a unified framework, obtaining authorization remains complex for many operators. Last week, the European Securities and Markets Authority (ESMA) launched a supervisory review of authorized crypto-asset service providers, examining how custodians safeguard client assets and manage operational risks.
Sebastien Dessimoz, co-founder and managing partner of digital asset infrastructure provider Taurus, told CoinTelegraph that securing a MiCA license is only the beginning for custodians, who face ongoing scrutiny over cybersecurity, governance, and client asset protection.
Where is Reed Smith expanding Aquarius beyond the EU?
Reed Smith said it plans to extend Aquarius to support crypto compliance regimes in the United Kingdom, the United Arab Emirates, Hong Kong, and Singapore. The firm operates a global digital asset practice under its On Chain initiative and has advised on major industry transactions, including Trump Media's $2.5 billion Bitcoin treasury financing and Nakamoto Holdings' merger with KindlyMD.
Meanwhile, reports suggest EU policymakers are considering revisions to MiCA's stablecoin framework, including rules on non-euro-denominated stablecoins. According to Euronews, those discussions have been prompted in part by the United States' GENIUS Act, which established a federal framework for payment stablecoins.
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