How does the EU classify different types of crypto assets?

3 answers

• Nov 29, 2021 · 3 years ago
  The EU classifies different types of crypto assets based on their characteristics and functions. They use a framework called the Markets in Crypto-Assets Regulation (MiCA) to determine the classification. MiCA considers factors such as whether the asset is transferable, whether it represents a claim on the issuer, and whether it is backed by an underlying asset. The classification helps to provide clarity and regulatory oversight in the crypto market.
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• Nov 29, 2021 · 3 years ago
  The EU's classification of crypto assets is aimed at ensuring investor protection and market integrity. They categorize crypto assets into three main types: e-money tokens, asset-referenced tokens, and utility tokens. E-money tokens are digital representations of fiat currency and are regulated as electronic money. Asset-referenced tokens are backed by specific assets, such as commodities or real estate, and are subject to stricter regulations. Utility tokens are used to access a specific product or service and are not considered financial instruments.
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• Nov 29, 2021 · 3 years ago
  According to the EU's classification, e-money tokens are considered the most regulated type of crypto asset. They are subject to anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. Asset-referenced tokens are also subject to AML and CTF regulations, as well as additional requirements related to investor protection. Utility tokens, on the other hand, are not subject to the same level of regulation as e-money and asset-referenced tokens. It's important to note that the classification may evolve over time as the EU continues to adapt to the rapidly changing crypto landscape.
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