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Compliance with MiCA

The Magic Newton Foundation is committed to regulatory transparency and compliance. In line with MiCA requirements, the Foundation has prepared and published a comprehensive MiCA whitepaper disclosing material information related to the NEWT token and Newton Protocol. This whitepaper includes token rights, associated risks, legal classification, governance structure, and technical descriptions. 

Based on an independent legal analysis, the NEWT token is classified as an Other Crypto-Asset under the EU’s Markets in Crypto-Assets Regulation (MiCA). It is not considered an electronic money token or an asset-referenced token, and does not fall within the scope of traditional financial services legislation in the EU. This classification is informed by the token’s utility-based design and the technical characteristics of the Protocol.

To view the MiCA whitepaper, please visit mica.newt.foundation.  The MiCA whitepaper any accompanying token legal classification is not passported into the U.S. or other jurisdictions and is provided only for regulatory completeness in the E.U.

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Sanctions & Jurisdictional Restrictions

The NEWT token is not intended for possession or use by any persons specifically designated by OFAC or other sanctions enforcement agency of competent jurisdiction, or for distribution in jurisdictions subject to comprehensive international sanctions. This includes, but is not limited to, Belarus, Cuba, Iran, North Korea, Russia, Syria, and the Crimea, Donetsk, and Luhansk regions of Ukraine. Geoblocking measures are implemented for any token distribution events to ensure compliance with applicable sanctions regimes. 

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Licenses and Registrations

As of the date of publication, other than as specified herein, the Foundation has not obtained specific licenses or registrations related to the offering or distribution of virtual assets in any jurisdiction. The Foundation continues to monitor evolving global regulatory frameworks and may seek licenses or engage with regulatory authorities as required.

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Protocol Intellectual Property

The Newton Protocol is built on open-source software and governed by permissive licenses to encourage transparency and community contribution. Further in the Protocol development process, core components of the protocol and associated tooling will be made available on the Foundation’s public GitHub repositories listed in Exhibit B: Audit Reports and Code Repositories. 

There are no current, pending, or threatened legal proceedings or regulatory investigations against the Magic Newton Foundation, Magic Newton Foundry Ltd., or Magic Newton Operations Ltd.

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Tax Considerations

Holding or transacting in NEWT may have tax consequences depending on the holder’s jurisdiction. These may include obligations related to capital gains, income, or transaction-based taxes. Each holder is solely responsible for understanding and complying with applicable local tax laws, and is encouraged to consult with independent tax advisors.