Cryptocurrency
A cryptocurrency is a crypto-asset that uses cryptography and a blockchain to record and validate transactions in a decentralised way, without a central authority managing its issuance.
“Cryptocurrency” is the term in common usage, but the official legal nomenclature introduced by Regulation (EU) 2023/1114 (MiCAR) is “crypto-asset”. MiCAR distinguishes between three main categories: asset-referenced tokens (ARTs), e-money tokens (EMTs), and utility crypto-assets (referred to as crypto-assets “other than” ARTs or EMTs).
Cryptocurrencies are sometimes presented as a “store of value”; however, this characteristic is un-guaranteed and controversial, as their value is generally highly volatile. Holding crypto-assets involves specific risks, including the potential partial or total loss of capital.
For more information on this matter, please read the General Risk Disclosure.