Cryptoasset Regulatory Focus

Blockchain

a method of recording data in a structured way. Data (which may be recorded on a database or ledger) is usually grouped into timestamped “blocks” which are mathematically linked or “chained” to the preceding block, back to the original or “genesis” block.

Business models

Plans for the successful operation of a business using Blockchain technology, identifying sources of revenue, the intended customer base, products, and details of financing.

Decentralised Finance (DeFi)

An umbrella term for a variety of financial applications in Cryptoassets or Blockchain geared toward disrupting financial intermediaries.

Tokenisation

Process where some form of assets are converted into a token that can be moved, stored, or recorded on a Blockchain.

Central Bank Digital Currencies (CBDCs)

A digital payment instrument, denominated in the national unit of account, that is a direct liability of the central bank.

Digital Identity

Arises organically from the use of personal information on the web and from the shadow data created by the individual’s actions online.

Intellectual Property

Something that is created using the mind - for example, a story, an invention, an artistic work or a symbol.

Decentralised Autonomous Organisations (DAOs)

An organization represented by rules encoded as a computer program that is transparent, controlled by the organization members and not influenced by a central government

Corporate Governance

The system of rules, practices, and processes by which a firm is directed and controlled.

 

Cryptoasset Regulatory Focus

Cryptoassets

a cryptographically secured digital representation of value or contractual rights that uses a form of distributed ledger technology (DLT) and can be transferred, stored or traded electronically.

Ownership

The state or fact of exclusive rights and control over property, which may be any asset, including an object, land or real estate, intellectual property.

Categorisation

The act or method of distributing into a class or category according to characteristics.

Stablecoins

A type of Cryptoasset whose value is pegged to another asset class, such as a fiat currency or gold, to stabilize its price

Use

The ability or power to use a Cryptoasset.

Non-Fungible Tokens (NFTs)

A unit of data stored on a Blockchain that certifies a digital asset to be unique and therefore not interchangeable.

Creation

The activity of the Cryptoasset issuer minting new tokens.

Distribution

Distribution of newly created tokens via an array of channels.

Property Rights

The theoretical and legal ownership of Cryptoassets and how they can be used.

Nature

The basic or inherent features, character or qualities of Cryptoassets.

Form

The particular way in which Cryptoassets look or appear.

Types

A category of Cryptoassets having common characteristics.

Airdrops

Receipt of an allocation of Cryptoassets, for example as part of a marketing or advertising campaign in which people are selected to receive them.

Sandbox

Environment that allows businesses to test innovative propositions in the market with real consumers.

Whitepaper

Official documentation that contains information on, amongst other things, a detailed description of the issuer and a presentation of the main participants involved in the project's design and development.

 

Cryptoasset Regulatory Focus

Exchanges, Markets and Wallet Providers

venues enabling users to buy and sell cryptoassets for other assets; a firm or sole practitioner who by way of business provides
services to safeguard, or to safeguard and administer cryptoassets or
private cryptographic keys.

Types of Markets

Knowledge of the different marketplaces in which Cryptoassets may be traded, exchanges, transferred and/or swapped.

On-Ramps and Off-Ramps

Conversion of fiat money into cryptocurrencies (and vice-versa).

Financial Crime

Activity including any offence involving:
(i) Fraud or dishonesty;
(ii) Misconduct in, or misuse of information relating to, a financial market;
(iii) Handling the proceeds of crime; and
(iv) The financing of terrorism.

Regulation of Markets

Existence of an idealized system where the government or other organizations oversee the market, control the forces of supply and demand, and to some extent regulate the market actions

Re-Hypothecation of Assets

Practice whereby market participants use, for their own purposes, Cryptoassets that have been posted as collateral by other persons.

Wallet Providers

A firm or sole practitioner who by way of business provides services to safeguard, or to safeguard and administer:

(a) cryptoassets on behalf of its customers; or


(b) private cryptographic keys on behalf of its customers in order to hold, store and transfer cryptoassets, when providing such services.

Market Surveillance

Prevention and investigation of abusive, manipulative or illegal trading practices in the Cryptoassets market,

Data and Analytics

Science of analyzing raw data in regard to Cryptoassets in order to make conclusions about that information

Licensing

Permission to engage to do, use or own Cryptoassets.

 

Cryptoasset Regulatory Focus

Capital Markets and Fundraising

financial markets where shares, derivatives, bonds and other instruments are bought and sold; tbe he seeking of financial support for a charity, cause, or other enterprise.

Initial Coin Offering (ICO)

An operation through which companies, entrepreneurs, developers or other promoters raise capital for their projects in exchange for digital tokens (or ‘coins’), that they create

Initial Exchange Offering (IEO)

Fundraising event that is administered by an Exchange.

Investment Funds

A supply of capital belonging to numerous investors used to collectively purchase Cryptoassets while each investor retains ownership and control of his own Cryptoassets.

Broker-Dealers and other Financial Intermediaries

Providing a middle ground between two parties in any financial transaction.

Primary Market Activities 

Activities associated with the creation of Cryptoassets.

Secondary Market Activities

Activities associated with the buying/selling of Cryptoassets.

Tangential Activities

Activities closely associated with Primary Market Activities and Secondary Market Activities.

Market Integrity

The cornerstone of fair and efficient markets, ensuring that participants enjoy equal access to markets, that price discovery and trading practices are fair, and that high standards of corporate governance are met.

Investor Protection

Ability of investors to make informed decisions and feel confident they are adequately protected if something goes wrong.

 

Cryptoasset Regulatory Focus

Smart Contracts

a legally binding contract in which some or all of the terms are recorded in or performed automatically by a computer program deployed on a distributed ledger.

Enforceability

Legally enforceable nature of Smart Contracts.

Developer liability

The state of being legally responsible for the development of Smart Contracts.

 

Cryptoasset Regulatory Focus

Mining and Staking

process of securing the Blockchain and obtaining rewards/interest

Mining

Securing the global ledger generally by computng large amounts of hashes to find a valid block that gets added to the Blockchain.

Staking

Locking up crypto holdings in order to obtain rewards or earn interest.

 

Cryptoasset Regulatory Focus

Miscellaneous

elements of various types or from different sources pertaining to other activities involving Cryptoassets.

Ratings Website

Websites designed for users to vote, rate Cryptoassets, projects, content, or other things.

Banking Services

Any one or more of the following services provided to the borrower or any subsidiary by any lender or any of its affiliates:
(a) credit cards for commercial customers (including, without limitation, commercial credit cards and purchasing cards);
(b) stored value cards; and
(c) treasury management services (including, without limitation, controlled disbursement, automated clearinghouse transactions, return items, overdrafts and interstate depository network services).

Software Development

A set of computer science activities dedicated to the process of creating, designing, deploying and supporting software.

Financial Promotions

Communication of an invitation or inducement to engage in any investment activity or claims management activity in the course of business.

Capital Requirements

Requirements relating to effective management of capital and liquidity, to protect consumers and financial stability.

Authorisation and Registration

The requirement to be authorised prior to operating.

Key Management Services

Requirements principally on Wallet Providers and Exchanges to ensure those entities are appropriately protecting users' privacy and security of keys to those tokens.

Organisational Requirements

High-level requirements that apply under the applicable regulatory regime(s), including, but not limited to:
(i) notification and reporting;
(ii) record keeping; and
(iii) outsourcing.

Conflicts of Interest

A situation that arises where a person has two (or more) competing interests and serving one of those interests could damage or harm the other interest.

 

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