MiCA's three types of crypto-asset
MiCA, Regulation (EU) 2023/1114, sorts crypto-assets by whether they seek to stabilise their value by reference to other assets, and sets different rules for each type:
- E-money token: purports to keep a stable value by referencing one official currency
- Asset-referenced token: purports to keep a stable value by referencing another value or right, or a combination
- Other crypto-assets: all the rest, including utility tokens, which give access to a good or service of the issuer
What MiCA leaves out
MiCA does not apply to crypto-assets that qualify as financial instruments, as deposits, or as funds other than e-money tokens, which stay under their own laws. It also leaves out crypto-assets that are unique and not fungible with others, and does not apply to the ECB or to national central banks acting as monetary authorities.
The same thing under other names
The Financial Action Task Force says virtual asset: a digital representation of value that can be digitally traded or transferred and used for payment or investment. UK law writes cryptoasset as one word, defined in the Financial Services and Markets Act 2000 as a cryptographically secured digital representation of value or contractual rights that can be transferred, stored or traded electronically.
Digital asset is the looser industry word. Which definition a token meets decides which licence a business handling it needs.
Crypto-asset, cryptocurrency or token?
- Cryptocurrency
- A crypto-asset meant to work as money, such as bitcoin. Every cryptocurrency is a crypto-asset, and not the reverse.
- Token
- A crypto-asset issued by a smart contract on an existing blockchain, as opposed to a network's own coin.
- Financial instrument
- A share, bond or derivative. One issued on a ledger is still a financial instrument, and MiCA does not apply to it.
Where a crypto-asset shows up in a platform
Modules that do the work
- Custody & walletsWallets on every major chain, with MPC custody from leading providers or your own keys.
- LedgerThe double-entry book of record behind every balance, fee and transfer.
- Compliance reportingTransaction monitoring, the Travel Rule and regulatory reports, ready for your regulator.
Platforms that need it
Guides that go deeper
Where it is written
The laws and standards this page's facts come from.
- Regulation (EU) 2023/1114, MiCA, Articles 2 and 3 and recital 18 (EUR-Lex)
- FATF Glossary, Virtual Asset (FATF)
- Financial Services and Markets Act 2000, section 417 (legislation.gov.uk)
General information, not legal advice: what applies to you depends on your services and your market.