Law Firm Reed Smith launches a compliance platform to navigate evolving cryptocurrency rules in the European Union. This comes after the exemption for companies engaged in cryptocurrency trading has ended on July 1, 2026.
The platform, called Aquarius, uses automation to aid firms in due diligence, regulatory white paper generation, and environmental, social and governance disclosures, and other legal workflows. Reed Smith plans to expand this platform to the United Kingdom, the UAE, Hong Kong, and Singapore.
The intent is to democratize access to compliance—providing current companies with a stable, simple template in line with the Markets in Crypto-Assets (MiCA) regulation that the EU recently enforced.
The MiCA Regulation
The MiCA Regulation implements policies for crypto-asset white papers (analyses) and order book records to be kept by crypto-asset service providers operating a trading platform.
It also provides the data standards applicable to record-keeping by certain crypto-asset service providers whose services involve placement of orders or execution of transactions. MiCA intends to support protocols bringing cryptocurrency transactions into the everyday economy.
The Importance of the Compliance Tool
As of July 1, over 80% of Europe’s cryptocurrency platforms still lack a license that—by intent—promises safety, clarity, and transparency to users of said platforms.
Starting July 1, the MiCA regulations will lock out cryptocurrency platforms from operating if they are non-compliant with the EU regulatory framework. As Hamayon Zafar comments: “this is because of paperwork”. Reed Smith’s compliance tool therefore allows cryptocurrency platforms to easily navigate and assure—with the assistance of automation—that they remain within the rigorous regulations set by the EU’s MiCA regulations.
The Aquarius compliance tool went live on July 13, following the demand for regulatory matchmaking by cryptocurrency firms.
The Future of the Compliance Tool
Reed Smith plans to expand the Aquarius tool to also serve markets in the United Kingdom, Hong Kong, the UAE, Singapore, and others, in the future. Aquarius shall adapt to the different regulatory landscapes present in these territories.
Currently, Singapore, Hong Kong, and the United Arab Emirates have enforced evolving regulatory frameworks. Meanwhile, the United Kingdom will require full authorization by the Financial Conduct Authority for cryptocurrency platforms by October 2027.
