Compliance

Subscrypts is committed to full regulatory compliance and transparency in its token offering. The project’s whitepaper has been prepared in accordance with the EU’s Markets in Crypto-Assets (MiCA) Regulation (EU) 2023/1114, which mandates detailed disclosures for public crypto-asset offerings.

!!! 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 (the issuer) is solely responsible for the content of the whitepaper. The team affirms that the whitepaper complies with Regulation (EU) 2023/1114 and that, to the best of their knowledge, the information presented is fair, clear, and not misleading, with no material omissions.

MiCA Classification

Under MiCAR, the SUBS token is classified as an “other crypto-asset,” commonly referred to as a utility token. This means it is not an e-money token (stablecoin) or asset-referenced token, and it is not a security. SUBS is intended solely to provide access to the Subscrypts platform’s services. Owning SUBS does not confer ownership rights or profit-sharing entitlements, and there is no promise of returns from holding the token.

This classification allows Subscrypts to conduct a public token sale across the European Economic Area by publishing a MiCA-compliant crypto-asset whitepaper rather than a full securities prospectus.

Key Risk Warnings

In accordance with MiCA requirements, Subscrypts has disclosed risk factors to help potential token holders make informed decisions.

Loss of Value: “The SUBS crypto-asset may lose its value in part or in full.” There are no guarantees of market value or recovery.

Liquidity and Transferability: “The SUBS crypto-asset may not always be transferable and may not be liquid.” There may be times when buyers or markets are unavailable.

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.” If the platform ceases operations, the token’s utility ceases with it.

No Investor Guarantee: “SUBS tokens are not covered by investor compensation schemes.” No government or insurance protection applies to token holders.

No Deposit Protection: “SUBS tokens are not covered by deposit guarantee schemes.” SUBS holdings are not protected like bank deposits.

Additional Project Risks

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

Liquidity Constraints: Initially, SUBS will be tradable primarily on decentralized exchanges. Liquidity may be limited, meaning it could be difficult to sell or exchange tokens quickly.

Early-Stage Project Risk: Subscrypts is a developing project with no guaranteed revenues. Success depends on adoption, partnerships, and continued platform development. Failure to grow may render the token’s utility minimal or obsolete.

Technology and Security: While Subscrypts’ smart contracts have undergone internal testing, external audits are pending. Bugs or vulnerabilities could result in partial or total loss of funds. Security audits are planned, but no system is fully immune to exploits.

Regulatory and Legal Uncertainty: Cryptocurrency regulation is evolving. Future laws could impact the legal status or operation of Subscrypts. Some jurisdictions might reclassify the SUBS token or require additional licensing. Tax treatment also varies and may change over time.

Platform-Specific Risks: If Subscrypts as a company ceases operations, SUBS would lose its primary use-case. There is no guarantee of indefinite platform availability or continued support.

Transparency and Ongoing Compliance

Subscrypts fully discloses these and other risks in its whitepaper’s Risk Disclosure section. The team encourages users to review the document thoroughly before participating. Crypto-assets are inherently volatile, and users must understand they could lose their full investment.

Despite these risks, Subscrypts believes transparency and proactive compliance build lasting trust. The project has chosen to operate within the EU regulatory framework from inception, producing a voluntary MiCA-compliant whitepaper. The team commits to updating disclosures and seeking regulatory review when required—for instance, if new tokens are issued or material changes occur.

All public communications, token offerings, and platform activities follow regulatory guidelines to promote fairness, consumer protection, and accountability.

Conclusion

Compliance is a core principle of Subscrypts, not an afterthought. By adhering to MiCAR standards and openly communicating all risks and obligations, Subscrypts aims to foster user confidence and operate responsibly within the evolving European crypto-asset regulatory landscape.