Knowledge Base
Describe the characteristics and functionalities of different crypto-assets
Which technology underpins all crypto-assets and enables disintermediated transactions?
Blockchain is defined in French law as a shared electronic recording device. It uses asymmetric cryptography to ensure the security and decentralization of transactions, which is essential for the operation of crypto-assets.
Which category of crypto-assets represents financial securities converted into digital tokens?
Security tokens are defined as financial securities converted into digital tokens. They confer financial rights such as dividends or interest, as well as political rights such as voting rights at general meetings. Due to their nature, they fall under the legal regime for transferable securities, which distinguishes them from other crypto-assets such as utility tokens or stablecoins.
What is the main objective of stablecoins?
Stablecoins are designed to maintain a stable value by being backed by reference assets. The European MiCA regulation distinguishes two types: those backed by a single fiat currency and those referencing a diversified basket of assets. Their stability is essential for reducing the volatility typical of other crypto-assets.
What is the main advantage of digital wallets for crypto-assets?
Digital wallets enable secure storage of crypto-assets through asymmetric cryptography. They pair public and private keys to ensure that only legitimate owners can execute transactions, thereby guaranteeing the security and ownership of assets.
What is a utility token?
Click to see answer
A utility token confers a usage right on a product or service developed by the issuer. It functions as a prepayment for a future service and is directly linked to a particular entrepreneurial project. For example, the company French-ICO issued tokens granting access to a crowdfunding platform specialized in crypto-assets.
Categorize items by dragging them to the appropriate zones
Items to categorize:
Tokens
Cryptocurrencies
This question verifies the ability to classify crypto-assets according to their legal definition. Tokens and cryptocurrencies are the two main categories, with specific sub-categories such as utility tokens, security tokens, stablecoins, and NFTs.
NFTs (non-fungible tokens) are always considered fungible tokens under the MiCA regulation.
The MiCA regulation excludes NFTs from its scope if they are truly unique. However, it specifies that NFTs issued in large series can be reclassified as fungible tokens. Thus, not all NFTs are automatically considered fungible, only those issued in bulk.
Cryptocurrencies are issued and guaranteed by a central bank.
By legal definition, cryptocurrencies are not issued or guaranteed by a central bank. They do not hold the legal status of legal tender currency but are accepted as a medium of exchange. This distinction is crucial for understanding their decentralized nature.