Definitions – MiCA Papers

Providing advice on crypto-assets. Offering, giving or agreeing to give personalised recommendations to a client, either at the client’s request or on the initiative of the crypto-asset service provider providing the advice, in respect of one or more transactions relating to crypto-assets, or the use of crypto-asset services.

Applicant issuer. An issuer of asset-referenced tokens or e-money tokens who applies for authorisation to offer to the public or seeks the admission to trading of those crypto-assets.

Asset-referenced token (ART). A type of crypto-asset that is not an electronic money token and that purports to maintain a stable value by referencing another value or right or a combination thereof, including one or more official currencies.

Crypto-asset service. Certain services and activities relating to any crypto-asset.

Crypto-asset service provider (CASP). A legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is allowed to provide crypto-asset services in accordance with Article 59 MiCAR.

Consensus mechanism. The rules and procedures by which an agreement is reached, among DLT network nodes, that a transaction is validated.

Crypto-asset. A digital representation of a value or of a right that is able to be transferred and stored electronically using distributed ledger technology or similar technology.

Providing custody and administration of crypto-assets on behalf of clients. The safekeeping or controlling, on behalf of clients, of crypto-assets or of the means of access to such crypto-assets, where applicable in the form of private cryptographic keys.

Distributed ledger. An information repository that keeps records of transactions and that is shared across, and synchronised between, a set of DLT network nodes using a consensus mechanism.

DLT network node. A device or process that is part of a network and that holds a complete or partial replica of records of all transactions on a distributed ledger.

Distributed ledger technology (DLT). A technology that enables the operation and use of distributed ledgers.

European Banking Authority (EBA). An EU-wide regulatory body which works to ensure effective and consistent prudential regulation and supervision across the European banking sector.

European Economic Area (EEA). A free trade area that includes the European Union (EU) and three of the European Free Trade Association (EFTA) countries: Iceland, Liechtenstein, and Norway.

E-money token. A type of crypto-asset that purports to maintain a stable value by referencing the value of one official currency.

European System of Financial Supervision (ESFS). A network centered around three European Supervisory Authorities (ESAs), the European Systemic Risk Board and national supervisors

European Securities and Markets Authority (ESMA). An EU-wide regulatory body that works to ensure stability and integrity of securities markets, and protect investors and consumers of financial services.

European Union (EU). A political and economic union of 27 member states that are located primarily in Europe.

Exchange of crypto-assets for other crypto-assets. The conclusion of purchase or sale contracts concerning crypto-assets with clients for other crypto-assets by using proprietary capital.

Exchange of crypto-assets for funds. The conclusion of purchase or sale contracts concerning crypto-assets with clients for funds by using proprietary capital.

Funds. As defined in Article 4, point (25), of Directive (EU) 2015/2366.

Issuer. A natural or legal person, or other undertaking, who issues crypto-assets.

Offer to the public. A communication to persons in any form, and by any means, presenting sufficient information on the terms of the offer and the crypto-assets to be offered so as to enable prospective holders to decide whether to purchase those crypto-assets.

Offeror. A natural or legal person, or other undertaking, or the issuer, who offers crypto-assets to the public.

Official currency. An official currency of a country that is issued by a central bank or other monetary authority.

Execution of orders for crypto-assets on behalf of clients. The conclusion of agreements, on behalf of clients, to purchase or sell one or more crypto-assets or the subscription on behalf of clients for one or more crypto-assets, and includes the conclusion of contracts to sell crypto-assets at the moment of their offer to the public or admission to trading.

Reception and transmission of orders for crypto-assets on behalf of clients. The reception from a person of an order to purchase or sell one or more crypto-assets or to subscribe for one or more crypto-assets and the transmission of that order to a third party for execution.

Placing of crypto-assets. The marketing, on behalf of or for the account of the offeror or a party related to the offeror, of crypto-assets to purchasers.

Providing portfolio management of crypto-assets. Managing portfolios in accordance with mandates given by clients on a discretionary client-by-client basis where such portfolios include one or more crypto-assets.

Operation of a trading platform for crypto-assets. The management of one or more multilateral systems, which bring together or facilitate the bringing together of multiple third-party purchasing and selling interests in crypto-assets, in the system and in accordance with its rules, in a way that results in a contract, either by exchanging crypto-assets for funds or by the exchange of crypto-assets for other crypto-assets.

Providing transfer services for crypto-assets on behalf of clients. Providing services of transfer, on behalf of a natural or legal person, of crypto-assets from one distributed ledger address or account to another.

Utility token. A type of crypto-asset that is only intended to provide access to a good or a service supplied by its issuer.