MiCAR White Paper

MiCAR regulatory compliance white paper. EU Markets in Crypto-Assets Regulation compliance documentation for Vultisig.

This document addresses Vultisig's compliance considerations under the European Union's Markets in Crypto-Assets Regulation (MiCAR).

---

Overview

The Markets in Crypto-Assets Regulation (MiCAR) establishes a comprehensive regulatory framework for crypto-assets in the European Union. This white paper outlines how Vultisig's architecture and operations relate to MiCAR requirements.

---

Vultisig Classification

Non-Custodial Software

Vultisig is non-custodial wallet software—it provides tools for users to manage their own digital assets without Vultisig taking custody or control.

Key characteristics:

• No custody: Vultisig never holds user funds

• No private key access: Keys are never constructed; vault shares remain with users

• User sovereignty: Users maintain complete control over their assets

Software Provider vs. CASP

Under MiCAR, Crypto-Asset Service Providers (CASPs) require authorization. Vultisig's role as a non-custodial software provider differs from regulated custody services:

Aspect	CASP (Custodial)	Vultisig (Non-Custodial)
Asset Control	Provider holds assets	User holds assets
Key Management	Provider manages keys	User manages vault shares
Recovery	Provider can recover	Only user can recover
Regulatory Status	Requires CASP license	Software tool

---

Technical Architecture

Threshold Signatures

Vultisig uses threshold signature schemes (TSS) where:

1. No single private key is ever created

2. Vault shares are distributed across user devices

3. Signatures require threshold collaboration

4. Vultisig has no access to signing capability

Data Handling

Vultisig minimizes data collection:

• No user registration required

• No KYC/identity verification

• No transaction data storage

• Vault data stored locally on user devices

---

User Protections

Transparency

• Open source: All code publicly auditable

• Documentation: Comprehensive user guides

• Risk disclosure: Clear communication of self-custody responsibilities

Security

• Audited code: Independent security assessments

• No single point of failure: TSS architecture

• User education: Best practices documentation

---

Regulatory Engagement

Vultisig is committed to:

• Monitoring regulatory developments

• Engaging with regulators constructively

• Adapting to evolving requirements

• Maintaining transparency with users

---

Disclaimers

This white paper is for informational purposes only and does not constitute legal advice. Regulatory interpretations may vary by jurisdiction and may change over time.

Users are responsible for:

• Understanding applicable regulations in their jurisdiction

• Complying with local laws regarding digital assets

• Seeking professional legal and tax advice as needed

---

Contact

For regulatory inquiries:

• Email: [email protected]

---

Related

• Terms of Use

• Privacy Policy

• Security