This Practice Note focuses on the approach of EU authorities and regulators (ie, the European Banking Authority (EBA) and the European Securities and Markets Act (ESMA)). It also provides some background to the meaning of cryptoassets and the unique challenges that cryptoassets pose to regulators. For information about the approach taken by UK authorities and regulators, see Practice Note: UK regulation of cryptoassets. For more information about the approach taken by supranational bodies, see Practice Note: Supranational approach to the regulation of cryptoassets.
This Practice Note should also be read in conjunction with Practice Note: Web 3.0, digital assets and cryptoassets—essentials which discusses:
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What are cryptoassets?
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Common terms associated with cryptoassets
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Development of cryptoassets
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Characteristics of cryptoassets
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Considerations for businesses looking at cryptoasset technology
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Cryptoassets, the smart contract and ICOs
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Disputes involving cryptoassets
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Regulation of cryptoassets
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Cryptoassets as regulated investments
What are cryptoassets?
One of the hurdles in relation to understanding non-traditional currencies and assets lies in the inconsistent use of language. Regulators and tax authorities, as well as commentators,
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