Reed Smith Launches Aquarius Platform to Automate MiCA Crypto Compliance
The automated tool arrives as the European Union enters a new phase of digital asset oversight following the end of the transition period.
Reed Smith, a global law firm with over 30 offices across North America, Europe and Asia, has launched an automated compliance platform designed to help crypto companies navigate the European Union’s Markets in Crypto-Assets regulation as the bloc enters a new phase of crypto 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 United Kingdom, the United Arab Emirates, Hong Kong and Singapore.
According to the firm, Aquarius is intended to simplify compliance for companies entering the European market or expanding their crypto offerings in the region by combining automated workflows with legal expertise.
The Post-Transition Regulatory Landscape
The launch comes shortly after the European Union’s transition period ended on July 1, when crypto companies could no longer rely on temporary national exemptions in countries that adopted the full grandfathering period. The sweeping framework establishes licensing, consumer protection and operational requirements for digital asset service providers across the 27-member EU.
Reed Smith operates a global digital asset practice under its On Chain initiative, advising on several high-profile industry transactions. It served as legal counsel to the placement agents in Trump Media’s $2.5 billion Bitcoin treasury financing and advised Nakamoto Holdings in its merger with KindlyMD to create a Bitcoin treasury company.
Background: The MiCA Framework
The Markets in Crypto-Assets regulation represents the first comprehensive regulatory framework for digital assets established by a major global jurisdiction. Officially entering into force in June 2023, the legislation aims to harmonize the regulatory landscape across the European Economic Area. By replacing a patchwork of national rules with a single unified rulebook, the regulation allows authorized crypto-asset service providers to “passport” their services across all 27 EU member states. The framework divides digital assets into distinct categories, including utility tokens, asset-referenced tokens, and electronic money tokens.
Ongoing Compliance Challenges
Despite a harmonized framework, obtaining authorization remains a complex process for many service operators. Recently, the European Securities and Markets Authority launched a supervisory review of authorized crypto-asset service providers, examining how custodians safeguard client assets and manage operational risks.
According to Sebastien Dessimoz, co-founder and managing partner of digital asset infrastructure provider Taurus, obtaining a license is only the beginning for custodians, who face ongoing scrutiny over cybersecurity, governance and ability to protect client assets.
Reports suggest EU policymakers are considering revisions to the stablecoin framework, including rules governing the issuance of non-euro-denominated stablecoins. The discussions have been prompted in part by the United States’ GENIUS Act, which established a federal framework for payment stablecoins.
