Reed Smith Introduces Aquarius to Simplify MiCA Compliance for Crypto Firms

Highlights:

• Reed Smith launched Aquarius to automate key tasks and simplify MiCA compliance for crypto companies in Europe.
• European regulators now expect crypto firms to maintain stronger operational controls after receiving MiCA authorization.
• Crypto custodians are facing closer oversight as MiCA Compliance shifts the focus from licensing to daily supervision.

Reed Smith, a global law firm, has launched Aquarius, an automated compliance platform for crypto companies operating under the European Union’s Markets in Crypto-Assets regulation. The firm launched Aquarius after the European Union ended the MiCA transition period on July 1 and began full enforcement of the framework. Crypto companies can no longer rely on temporary national exemptions because the MiCA grandfathering period ended on July 1. Instead, crypto companies must comply with one MiCA framework that applies across all 27 EU member states.

JUST IN: 🇪🇺 Global law firm Reed Smith has launched an AI-powered MiCA compliance platform to help crypto companies streamline regulatory compliance as the European Union's new crypto rules take effect. pic.twitter.com/HIrhNZhAWP

— EyeWhales (@EyeWhales) July 14, 2026

MiCA now requires crypto-asset service providers across all 27 EU member states to meet common licensing, consumer protection and operational standards. Reed Smith said Aquarius supports crypto companies entering the European market and firms expanding regulated digital asset services across the European Union. Aquarius combines automated compliance workflows with legal support to simplify MiCA requirements for crypto companies operating in Europe.

Reed Smith launched Aquarius four days after creating Reed Smith Legal Solutions on July 9 to expand its technology-driven legal services. Aquarius operates under that division. Reed Smith has been expanding its digital asset practice through its “On Chain” initiative, which advises clients on cryptocurrency and blockchain transactions.

The firm advised the placement agents in Trump Media’s $2.5 billion Bitcoin treasury financing through that practice. Reed Smith also advised Nakamoto Holdings during its merger with KindlyMD, which created a Bitcoin treasury company.

Reed Smith Simplifies MiCA Compliance

Aquarius automates crypto-asset classification, regulatory white paper generation, due diligence and ESG disclosures that MiCA requires. Aquarius classifies crypto assets under MiCA before determining the disclosure and compliance requirements that apply to each token. The classification determines the regulatory obligations, disclosure requirements and licensing expectations for each crypto asset. Aquarius also generates the regulatory white papers that MiCA requires before issuers offer certain crypto assets to the public.

The platform also automates due diligence reviews and environmental, social and governance disclosures required under MiCA. Aquarius generates Legal Entity Identifiers, which financial regulators use to identify organizations participating in regulated markets. Reed Smith said Aquarius combines automated workflows with legal review so companies can complete MiCA requirements more efficiently.

Reed Smith plans to expand Aquarius to support crypto compliance frameworks in the United Kingdom, the United Arab Emirates, Hong Kong and Singapore.

Supervisors Raise Standards for Custodians

European regulators are focusing on supervising licensed crypto firms instead of reviewing licensing applications alone. Last week, the European Securities and Markets Authority launched a Common Supervisory Action to examine selected MiCA-authorized crypto-asset service providers. The review focuses on licensed custodians and examines how they protect client assets after receiving authorization.

JUST IN: ESMA launches first coordinated crypto custody review after MiCA enters full enforcement

The European Securities and Markets Authority (ESMA) has launched its first Common Supervisory Action (CSA) on crypto-asset service providers (CASPs) since MiCA entered full… pic.twitter.com/n4s3DwsprY

— Wu Blockchain (@WuBlockchain) July 8, 2026

Meanwhile, European policymakers are discussing possible changes to MiCA after the framework entered full enforcement across the European Union. European officials have discussed changes to MiCA’s stablecoin rules, including the treatment of non-euro-denominated stablecoins, after the United States passed the GENIUS Act.

The European Parliament has also asked the European Commission to examine decentralized finance, staking, crypto lending, borrowing, non-fungible tokens and tokenized financial assets before proposing future MiCA amendments.