Reed Smith launches Aquarius to aid MiCA compliance

Reed Smith has launched Aquarius, an automated compliance platform that helps crypto firms meet the European Union’s Markets in Crypto-Assets (MiCA) rules. The platform automates crypto-asset classification, regulatory white paper generation, due diligence and environmental, social and governance (ESG) disclosures. The firm plans to extend Aquarius to cover compliance regimes in the United Kingdom, the United Arab Emirates, Hong Kong and Singapore.

Aquarius pairs automated workflows with legal input from Reed Smith’s digital asset practice, On Chain. The platform targets items that MiCA requires to be documented, including asset classifications, investor-facing disclosures and environmental and governance reporting.

The launch follows the end of MiCA’s transition period on July 1, after which firms can no longer rely on temporary national exemptions. MiCA sets licensing, consumer protection and operational requirements for digital asset service providers across the EU’s 27 member states. Firms seeking authorization must show controls for custody, governance and operational resilience.

Regulatory oversight is increasing. The European Securities and Markets Authority has opened a supervisory review of authorized crypto-asset service providers to assess how custodians safeguard client assets and manage operational risks. Sebastien Dessimoz, co-founder and managing partner of digital asset infrastructure provider Taurus, noted, “Obtaining a MiCA license is only the start for custodians,” and added they will face ongoing scrutiny of cybersecurity, governance and their ability to protect client assets.

Reed Smith operates more than 30 offices across North America, Europe and Asia and advises on digital asset transactions through On Chain. The practice acted as counsel to placement agents in a Bitcoin treasury financing and advised Nakamoto Holdings on a merger to form a Bitcoin treasury company.

The firm said it will update Aquarius to reflect regulatory changes and to support compliance across additional jurisdictions as rules develop. EU policymakers are reported to be reviewing parts of MiCA’s stablecoin framework, including rules for non-euro-denominated stablecoins, following recent U.S. federal legislation on payment stablecoins.