Compliance

Subscrypts is committed to regulatory compliance, transparency, and responsible communication in connection with the issuance and use of its crypto-asset. The project’s whitepaper has been prepared in accordance with the EU Markets in Crypto-Assets Regulation (MiCA) — Regulation (EU) 2023/1114, which establishes disclosure and conduct requirements for public crypto-asset offerings within the European Union.

!!! warning "Regulatory Notice" This crypto-asset offering is not a traditional securities offering. The Subscrypts whitepaper is not a prospectus and has not been approved by any financial authority. Subscrypts, as the issuer, is solely responsible for the content of the whitepaper. The issuer affirms that the whitepaper complies with Regulation (EU) 2023/1114 and that, to the best of its knowledge, the information presented is fair, clear, and not misleading, with no material omissions.

MiCA Classification

Under MiCA, the SUBS token qualifies as an “other crypto-asset”, commonly referred to as a utility token. It is neither an e-money token nor an asset-referenced token, and it does not constitute a security.

SUBS is intended exclusively to enable access to services offered through the Subscrypts platform. Holding SUBS does not confer ownership rights, governance voting power, profit-sharing entitlements, or claims on future revenues. No return or appreciation is promised or implied.

This classification permits Subscrypts to conduct a public crypto-asset offering within the European Economic Area by publishing a MiCA-compliant crypto-asset whitepaper, without the requirement to issue a securities prospectus.

Key Risk Warnings

In line with MiCA requirements, Subscrypts discloses the following non-exhaustive risks to enable informed decision-making:

Loss of Value:
“The SUBS crypto-asset may lose its value in part or in full.” There is no guarantee of market value, liquidity, or capital recovery.

Liquidity and Transferability:
“The SUBS crypto-asset may not always be transferable or liquid.” Trading may be limited to certain venues, and buyers or sellers may not always be available.

Utility Dependency:
“As a utility token, SUBS may not be exchangeable for the intended goods or services if the crypto-asset project fails or is discontinued.” The token’s utility is dependent on continued platform operation.

No Investor Protection:
“SUBS tokens are not covered by investor compensation schemes or deposit guarantee schemes.” Token holders do not benefit from protections applicable to traditional financial products or bank deposits.

Additional Project Risks

Market Volatility:
The market value of SUBS is determined by supply and demand and may fluctuate significantly. There is no price stabilization mechanism or central backing.

Liquidity Constraints:
Initially, SUBS is expected to be primarily tradable on decentralized exchanges. Liquidity may be limited, particularly in early stages.

Early-Stage Project Risk:
Subscrypts is an early-stage project. Platform adoption, commercial success, and long-term viability are not guaranteed. If adoption fails, the token’s practical utility may diminish or cease.

Technology and Security Risks:
While internal testing has been conducted, external security audits are ongoing or planned. Smart contract vulnerabilities, exploits, or unforeseen technical failures could result in partial or total loss of assets.

Regulatory and Legal Uncertainty:
Crypto-asset regulation continues to evolve. Future regulatory developments may affect the legal treatment, usage, or availability of SUBS in certain jurisdictions, including potential reclassification or additional compliance obligations.

Issuer and Platform Dependency:
If Subscrypts ceases operations, the SUBS token may lose its primary use-case. There is no guarantee of perpetual platform availability or issuer continuity.

Transparency and Ongoing Compliance

All material information, including token characteristics, supply structure, risk factors, and changes prior to launch, is disclosed in the whitepaper. Subscrypts is committed to updating disclosures where required by law or where material changes occur that could reasonably influence a participant’s decision-making.

The project has chosen to align with the EU regulatory framework from inception, publishing a MiCA-compliant crypto-asset whitepaper and adhering to transparency-by-design principles. Where required, updates or notifications will be made available through official communication channels.

All public communications and token-related activities are conducted with the objective of promoting fairness, consumer protection, and accountability.

Conclusion

Compliance is a foundational principle of Subscrypts. By adhering to MiCA standards, maintaining transparent disclosures, and clearly communicating risks and obligations, the project seeks to operate responsibly within the evolving European crypto-asset regulatory landscape.