MiCA Disclosure

Regulation (EU) 2023/1114 — the Markets in Crypto-Assets Regulation (“MiCA”) — sets the framework for crypto-asset issuers and Crypto-Asset Service Providers (“CASPs”) within the EU. This page explains how krypco and its services relate to MiCA, and what protections and risks apply to users.

krypco operates several services that fall under different MiCA categories:

• Crypto-asset trading platform: KrypcoSwap (the BFr ↔ kEUR / BFr ↔ kUSD / kEUR ↔ kUSD AMM) qualifies as the operation of a trading platform for crypto-assets under MiCA Title V. krypco is registering as a CASP with the Cyprus Securities and Exchange Commission (CySEC).
• Crypto-asset transfers / custody: krypco does not custody user crypto-assets. The wallet is non-custodial; users hold their own keys. krypco facilitates transfers as a non-custodial protocol operator.
• Exchange of crypto for fiat: the kEUR mint (incoming SEPA → kEUR) and kEUR redemption (kEUR → outgoing SEPA) services are operated in cooperation with a regulated banking partner. krypco performs the on-chain settlement and customer interface; the banking partner holds the EUR float and executes SEPA payments.

krypco does not issue an E-Money Token (EMT) or Asset-Referenced Token (ART) on its own balance sheet. kEUR and kUSD are bridgedtokens that represent EUR and USD reserves held in regulated stablecoins issued by Circle Internet Financial — namely EURC (a MiCA-compliant EMT authorised in the EU) and USDC (Circle's US-dollar stablecoin).

The economic relationship: 1 kEUR is at all times backed 1:1 by 1 EURC held in custody by an authorised custodian on Ethereum. The same holds for kUSD ↔ USDC. The bridge mints kEUR / kUSD on the krypco chain when EURC / USDC are locked, and burns them when EURC / USDC are released. Reserves are reconciled on-chain via a published reserves contract.

Because krypco itself is not the EMT issuer, it is not required to publish its own MiCA white paper for the kEUR / kUSD tokens. The MiCA white paper applicable to the underlying reserves is the one published by Circle for EURC. Users receiving kEUR / kUSD obtain economic exposure equivalent to holding the underlying EURC / USDC.

BFr is the native coin of the krypco hybrid blockchain. It is used for transaction fees, validator rewards under the Proof-of- Productivity consensus, and on-chain governance. BFr is not pegged to any fiat currency and its value can fluctuate. BFr does not qualify as an EMT or ART under MiCA — it is a utility token for the krypco network, classified as “Other crypto-assets” under Title II of MiCA.

MiCA requires CASPs to inform users prominently of the risks of crypto-asset investment. Key risks include:

• Loss of capital — crypto-assets may lose value, including all of their value. Past performance is not a guide to the future.
• Volatility —BFr's price may fluctuate significantly. kEUR and kUSD are designed to hold parity with EUR and USD, but extreme market events could cause temporary depegs.
• Liquidity risk — markets for BFr may be thin in early stages. Large orders may suffer slippage.
• Smart contract risk — despite audits, the on-chain protocol may contain bugs or be subject to exploits.
• Counterparty / banking risk — the SEPA payout feature depends on a regulated banking partner. Their failure or operational disruption may temporarily affect withdrawals. Reserves backing kEUR / kUSD depend on the soundness of the stablecoin issuer and its custodians.
• Regulatory risk — the regulatory regime applicable to crypto-assets is evolving. Changes in law could require krypco to suspend, modify or geo-block features.
• No deposit-guarantee scheme — crypto-assets and on-chain balances are not covered by national deposit-guarantee schemes. Funds held in your personal IBAN may be covered by the banking partner's applicable deposit protection up to its own statutory limits during the time they sit at the bank — not while they are on-chain as kEUR.

Marketing communications about krypco services are clearly identifiable as such, are fair, clear and not misleading, and contain the same risk warnings as this disclosure. Marketing for crypto-assets is only directed at jurisdictions where their offer or admission to trading is permitted.

krypco maintains a Conflicts-of-Interest policy as required by Article 72 MiCA. The KrypcoSwap fee schedule (70% liquidity providers / 20% krypco foundation / 10% burned) and the BFr token allocation are published transparently. Material conflicts identified are managed through information barriers, disclosure or refusal to act, as required.

You can submit a complaint to complaints@krypco.eu. We acknowledge complaints within 5 business days and respond substantively within 30 days. If you are not satisfied with the outcome, you may refer the matter to the competent authority — once krypco is registered, this will be CySEC in Cyprus.

krypco is preparing its CASP authorisation file with CySEC. Until authorisation is granted, services subject to MiCA authorisation are operated under the transitional regime in Article 143 MiCA where applicable, or restricted to non-MiCA-scoped functionality. The current authorisation status will be published here once filed and once granted.