Glossary · 200 terms · MiCA, AML, DeFi, custody
MiCA & EU Crypto Regulation Glossary
The definitive practitioner glossary of MiCA, EU crypto-regulation, CASP rules, AML/Travel Rule, stablecoins, custody, market abuse, and DeFi terminology. 200 terms with regulatory citations, cross-references, and links to the relevant CLI deep-dive articles.
A
- Advice on Crypto-Assets Personalised recommendations to clients about transactions in crypto-assets, requiring CASP authorisation. MiCA Defined Terms
- Airdrop Free distribution of tokens to specified addresses — may fall outside MiCA Title II if genuinely free-of-charge. White Paper & Token Issuance
- Algorithmic Stablecoin A stablecoin maintaining peg through algorithmic supply adjustment rather than reserves — restricted under MiCA. Stablecoins (ART / EMT)
- Anti-Money Laundering (AML) Legal framework preventing the integration of illicit funds into the financial system — applies to CASPs as obliged entities. AML & Travel Rule
- Anti-Money Laundering Authority (AMLA) The new EU AML authority headquartered in Frankfurt — directly supervises the largest cross-border obliged entities from 2028. EU Regulators & Authorities
- Anti-Money Laundering Regulation (AMLR) Regulation (EU) 2024/1624 — the single EU AML rulebook applying directly from 10 July 2027. AML & Travel Rule
- Article 60 Notification The streamlined notification route for credit institutions, EMIs, investment firms, and UCITS managers to provide CASP services. Process & Authorisation
- Asset Reserve The pool of assets backing outstanding ARTs — segregated, bankruptcy-remote, custodied by an independent credit institution or CASP. Stablecoins (ART / EMT)
- Asset-Referenced Token (ART) A crypto-asset that purports to maintain a stable value by referencing any other value, right, or basket — excluding single-currency reference. MiCA Defined Terms
- Authorisation Withdrawal NCA power to revoke CASP authorisation — for breach, fraud, persistent non-compliance, or voluntary surrender. Process & Authorisation
- Automated Market Maker (AMM) DeFi protocol pricing crypto-asset swaps via mathematical formula rather than order book — Uniswap, Curve, Balancer. DeFi & Crypto Technical
- Autorité de Contrôle Prudentiel et de Résolution (France) (ACPR) France banking and insurance supervisor — handles prudential aspects of CASP supervision alongside the AMF. EU Regulators & Authorities
- Autorité des Marchés Financiers (France) (AMF) France NCA for MiCA conduct supervision — Tier 1 supervisor with strong institutional credibility. EU Regulators & Authorities
- Autoriteit Financiële Markten (Netherlands) (AFM) Netherlands NCA for MiCA — markets-conduct supervisor. Unusually accepts English-language application files. EU Regulators & Authorities
B
- Banca d'Italia Italy central bank — handles prudential and AML supervision of CASPs alongside CONSOB conduct supervision. EU Regulators & Authorities
- Bank of Lithuania (BoL) Lithuania NCA for CASP authorisation — the fastest EU CASP supervisor by application throughput. EU Regulators & Authorities
- Bankruptcy-Remoteness Legal structure ensuring client crypto-assets are not part of the CASP's insolvency estate. Custody & Safeguarding
- Beneficial Ownership (BO) The natural person who ultimately owns or controls a customer — 25%+ direct or indirect ownership threshold. AML & Travel Rule
- Blockchain A specific DLT structure organising transactions in cryptographically-linked blocks — the most common DLT type. DeFi & Crypto Technical
- Branch Establishment A CASP establishing a physical branch in a host EU member state — heavier notification and substance than cross-border services. Cross-Border & Passport
- Bridge (Cross-Chain) A protocol transferring crypto-assets between different blockchains — typically operated by an identifiable entity within MiCA scope. DeFi & Crypto Technical
C
- Canadian Securities Administrators (CSA) Canada provincial securities regulators umbrella — supervises crypto-asset trading platforms via MSB+restricted dealer registration. Non-EU Regulators
- Capital Requirements Regulation (CRR) EU regulation establishing prudential rules for credit institutions — including the CET1 definition MiCA references for own funds. Stablecoins (ART / EMT)
- CASP Authorisation The formal MiCA Article 63 authorisation granted by the home NCA — required before providing crypto-asset services. Process & Authorisation
- Central Bank of Ireland (CBI) Ireland NCA for MiCA — Tier 1 EU supervisor with the highest institutional credibility, English-only filing. EU Regulators & Authorities
- Circulating Supply The number of tokens publicly available for trading — excludes locked, vested, or reserve allocations. White Paper & Token Issuance
- Close Links A situation where two persons are linked by participation, control, or permanent contractual relationship preventing supervisory oversight. MiCA Defined Terms
- Cold Storage Crypto-asset storage offline (not connected to the internet) — ESMA RTS requires 80%+ of client crypto-assets in cold storage. Custody & Safeguarding
- Comisión Nacional del Mercado de Valores (Spain) (CNMV) Spain NCA for MiCA — the Spanish securities markets regulator; AML supervision sits with SEPBLAC. EU Regulators & Authorities
- Commission de Surveillance du Secteur Financier (Luxembourg) (CSSF) Luxembourg NCA for MiCA — single-supervisor model. Heaviest substance bar; 9-12 month typical timeline. EU Regulators & Authorities
- Commissione Nazionale per le Società e la Borsa (Italy) (CONSOB) Italy NCA for MiCA conduct supervision — chairs the split-supervisor model with Banca d'Italia. EU Regulators & Authorities
- Commodity Futures Trading Commission (US) (CFTC) US commodity-derivatives regulator — supervises crypto-asset derivatives and the spot market for commodity-classified tokens. Non-EU Regulators
- Competent Authority (NCA) The national authority designated by each EU member state to supervise CASPs and crypto-asset issuers under MiCA. MiCA Defined Terms
- Consensus Mechanism The protocol by which blockchain nodes agree on transaction validity — PoW, PoS, and variants. DeFi & Crypto Technical
- Control The relationship between a parent undertaking and a subsidiary — direct or indirect majority of voting rights or decisive influence. MiCA Defined Terms
- Correspondent Relationship A banking-style relationship between CASPs across jurisdictions — subject to EDD and specific AML requirements. AML & Travel Rule
- Counter-Financing of Terrorism (CFT) Companion framework to AML — preventing the financing of terrorism through financial channels. AML & Travel Rule
- Credit Institution A bank authorised under the CRR — can issue EMTs/ARTs via notification (Article 17) and provide CASP services via Article 60. Stablecoins (ART / EMT)
- Cross-Border Services CASP services provided into a host EU member state without establishing a physical presence there. Cross-Border & Passport
- Crypto-asset A digital representation of value or rights that can be transferred and stored electronically using distributed ledger technology. MiCA Defined Terms
- Crypto-Asset Service Provider (CASP) A legal person providing one or more crypto-asset services on a professional basis to third parties under MiCA Title V authorisation. MiCA Defined Terms
- Crypto-Asset White Paper A document containing required disclosures about a crypto-asset offering — notified to the home NCA before public offering. MiCA Defined Terms
- Crypto-Backed Stablecoin A stablecoin collateralised by crypto-assets — typically over-collateralised due to underlying volatility. Stablecoins (ART / EMT)
- Custody and Administration of Crypto-Assets Safekeeping or controlling, on behalf of clients, crypto-assets or the means of access to such crypto-assets. MiCA Defined Terms
- Customer Due Diligence (CDD) The AML obligation to identify and verify customers, understand the relationship, and monitor transactions. AML & Travel Rule
- Cyprus Securities and Exchange Commission (CySEC) Cyprus NCA for CASP authorisation — fast, mid-cost EU jurisdiction with strong forex-broker conversion history. EU Regulators & Authorities
D
- De Nederlandsche Bank (DNB) Netherlands central bank — handles AML supervision and prudential matters for Dutch CASPs. EU Regulators & Authorities
- Decentralised Autonomous Organisation (DAO) An on-chain governance organisation typically operating via governance-token voting — often with off-chain legal-entity wrapper. DeFi & Crypto Technical
- Decentralised Finance (DeFi) Financial services on blockchain protocols without traditional intermediaries — MiCA scope per Article 2(2)(e). DeFi & Crypto Technical
- Digital Operational Resilience Act (DORA) Regulation (EU) 2022/2554 — EU-wide ICT risk-management framework that applies to CASPs from January 2025. Operational Resilience (DORA)
- Distributed Ledger Technology (DLT) Technology enabling decentralised ledger operation — the technical foundation of crypto-assets under MiCA. MiCA Defined Terms
E
- E-money Token (EMT) A crypto-asset that purports to maintain a stable value by referencing a single official currency. MiCA Defined Terms
- EBA Guidelines Non-binding EBA convergence tools — same "comply or explain" mechanism as ESMA Guidelines, applied in EBA areas. Process & Authorisation
- EBA Significance Criteria Quantitative thresholds the EBA uses to designate significant ARTs (Article 43) and EMTs (Article 56). Stablecoins (ART / EMT)
- Electronic Money Electronically stored monetary value representing a claim on the issuer — the EMD2 framework that MiCA Title IV builds upon. Stablecoins (ART / EMT)
- Electronic Money Institution (EMI) A non-bank issuer of electronic money authorised under EMD2 — can issue EMTs by notification under MiCA Title IV. Stablecoins (ART / EMT)
- Emission Schedule The pre-defined rate at which new tokens are created over time — fixed inflation or capped supply curve. White Paper & Token Issuance
- Enhanced Due Diligence (EDD) Stricter CDD applied to high-risk customers — PEPs, high-risk jurisdictions, complex structures, anonymous transactions. AML & Travel Rule
- Equivalence Determination European Commission decision that a third-country regulatory framework is equivalent to MiCA — enables specific cross-border arrangements. Cross-Border & Passport
- ESMA Guidelines Non-binding ESMA convergence tools — NCAs and supervised entities must "comply or explain" their approach. Process & Authorisation
- ESMA Register The EU-wide public register of authorised CASPs and notified ART/EMT issuers maintained by ESMA. Process & Authorisation
- Estonian Financial Supervision Authority (EFSA) Estonia NCA for MiCA — professional regulator, ~6-month typical timeline, supports English working dialogue. EU Regulators & Authorities
- EU Passport The mechanism allowing an authorised CASP to operate across all 27 EU member states via Article 65 notification. Cross-Border & Passport
- European Banking Authority (EBA) The EU banking supervisor — directly supervises significant ART issuers and produces stablecoin RTS under MiCA. EU Regulators & Authorities
- European Central Bank (ECB) The euro-area central bank — supervises significant credit institutions issuing ARTs/EMTs and DLT pilot settlement. EU Regulators & Authorities
- European Insurance and Occupational Pensions Authority (EIOPA) The EU insurance supervisor — produces guidance on insurance-policy substitution under MiCA Article 67(5). EU Regulators & Authorities
- European Securities and Markets Authority (ESMA) The EU agency coordinating securities market supervision and producing MiCA technical standards and guidelines. EU Regulators & Authorities
- Exchange of Crypto-Assets for Funds The CASP service of exchanging crypto-assets for fiat currency or vice versa on behalf of clients. MiCA Defined Terms
- Exchange of Crypto-Assets for Other Crypto-Assets The CASP service of exchanging one crypto-asset for another on behalf of clients. MiCA Defined Terms
- Execution of Orders on Behalf of Clients A CASP concluding agreements to buy or sell crypto-assets on behalf of clients, including agency arrangements. MiCA Defined Terms
F
- Federal Financial Supervisory Authority (Germany) (BaFin) Germany NCA for MiCA — applies banking-grade supervisory standards to CASP authorisation, single-supervisor model. EU Regulators & Authorities
- Fiat-Backed Stablecoin A stablecoin backed 1:1 by fiat currency reserves — typically an EMT under MiCA Title IV. Stablecoins (ART / EMT)
- Fifth Anti-Money Laundering Directive (5AMLD) Directive (EU) 2018/843 — brought crypto-asset service providers within the EU AML framework. AML & Travel Rule
- Financial Action Task Force (FATF) International body setting AML/CFT standards — its Recommendations 15-16 underpin the Travel Rule globally. AML & Travel Rule
- Financial Conduct Authority (UK) (FCA) UK markets-conduct regulator — runs the cryptoasset registration regime under the MLR 2017. Non-EU Regulators
- Financial Crimes Enforcement Network (US) (FinCEN) US Treasury AML enforcer — operates the federal MSB licensing regime for crypto money transmitters. Non-EU Regulators
- Financial Intelligence Unit (FIU) The national authority receiving suspicious-transaction reports and conducting AML intelligence analysis. AML & Travel Rule
- Financial Market Authority (Austria) (FMA) Austria NCA for MiCA — single-supervisor model with banking-grade standards. DACH alternative to BaFin. EU Regulators & Authorities
- Financial Services and Markets Authority (Belgium) (FSMA) Belgium NCA for MiCA conduct supervision — coordinates with NBB for credit-institution CASPs and AML. EU Regulators & Authorities
- Financial Services Commission (Korea) (FSC) South Korea financial regulator — supervises virtual-asset service providers under the 2024 Virtual Asset User Protection Act. Non-EU Regulators
- Fit and Proper Assessment NCA assessment of senior management — knowledge, experience, reputation, integrity, time commitment. Process & Authorisation
- Front-Running Trading on knowledge of a client order before executing the client order — a CASP conduct breach. Market Abuse (MiCA Title VI)
- Fully Diluted Valuation (FDV) Token valuation calculated using maximum supply rather than circulating supply — typically higher. White Paper & Token Issuance
G
H
- Hardware Security Module (HSM) Physical device generating, storing, and using cryptographic keys in a tamper-resistant environment. Custody & Safeguarding
- High-Risk Third Country Non-EU jurisdiction with strategic AML deficiencies — triggers Enhanced Due Diligence. AML & Travel Rule
- Home Competent Authority The NCA of the EU member state where the CASP or issuer has its registered office. MiCA Defined Terms
- Home State EU member state where a CASP is established and authorised — primary supervisor for ongoing compliance. Cross-Border & Passport
- Hong Kong Monetary Authority (HKMA) Hong Kong de facto central bank — supervises stablecoin issuers and bank crypto activities. Non-EU Regulators
- Host Competent Authority The NCA of a member state where a CASP provides services on a cross-border basis but is not established. MiCA Defined Terms
- Host State EU member state where a CASP operates via passport notification but is not established. Cross-Border & Passport
- Hot Wallet Crypto-asset storage connected to the internet — used for trading-liquidity; capped at 20% under ESMA RTS. Custody & Safeguarding
I
- Implementing Technical Standards (ITS) EU implementing acts specifying uniform application procedures — narrower than RTS, focused on forms and templates. Process & Authorisation
- Individual Segregation Each client's crypto-assets held in a wallet specific to that client — heavier operationally but simpler to evidence. Custody & Safeguarding
- Initial Coin Offering (ICO) A token sale typically conducted directly by an issuer — predominant fundraising structure 2017-2018, now MiCA-regulated. White Paper & Token Issuance
- Initial Exchange Offering (IEO) A token sale conducted through a centralised exchange — exchange handles distribution and KYC. White Paper & Token Issuance
- Insider Dealing Using inside information to deal in crypto-assets — prohibited under MiCA Article 89 (Title VI). Market Abuse (MiCA Title VI)
- Interim Suspension NCA power to temporarily suspend ART/EMT issuance or redemption where consumer-protection concerns arise. Stablecoins (ART / EMT)
- Issuer A natural or legal person who issues crypto-assets — responsible for white paper preparation under MiCA Title II/III/IV. MiCA Defined Terms
L
- Layer 1 (L1) The base blockchain protocol (Bitcoin, Ethereum, Solana) — provides consensus and settlement. DeFi & Crypto Technical
- Layer 2 (L2) A scaling solution operating on top of a Layer 1 blockchain — settles transactions at lower cost. DeFi & Crypto Technical
- Liquidity Management (Stablecoin) Operational arrangements ensuring ART/EMT issuers can meet redemption requests — daily reconciliation, liquidity buffers. Stablecoins (ART / EMT)
- Liquidity Pool A pooled crypto-asset deposit enabling AMM-based trading — depositors (LPs) earn trading fees in proportion to their share. DeFi & Crypto Technical
- Lock-Up Period Period during which token-sale participants cannot transfer or sell their tokens — manages post-launch supply. White Paper & Token Issuance
M
- Malta Financial Services Authority (MFSA) Malta NCA for MiCA — established crypto-asset supervisory experience from the 2018 Virtual Financial Assets Act. EU Regulators & Authorities
- Management Body The body that has the ultimate decision-making authority of a CASP — sets strategy, oversees executive management. MiCA Defined Terms
- Market Abuse Regulation (MAR) EU Regulation 596/2014 covering market abuse in financial instruments — analogous regime to MiCA Title VI for crypto. Market Abuse (MiCA Title VI)
- Market Making Continuous quoting of buy and sell prices to provide liquidity — legitimate when carried out under proper arrangements. Market Abuse (MiCA Title VI)
- Market Manipulation Conduct artificially affecting crypto-asset prices through false/misleading signals — prohibited under MiCA Article 91. Market Abuse (MiCA Title VI)
- Material Change Notification CASP obligation to notify the home NCA of material changes — new services, governance changes, qualifying-holdings shifts. Process & Authorisation
- Memorandum of Understanding (MoU) Bilateral or multilateral agreement between regulators for information-sharing and supervisory cooperation. Cross-Border & Passport
- Monetary Authority of Singapore (MAS) Singapore financial regulator — runs the Payment Services Act DPT regime for crypto-asset providers. Non-EU Regulators
- Money Laundering Reporting Officer (MLRO) The senior compliance officer responsible for AML compliance and STR filing within an obliged entity. AML & Travel Rule
- Multi-Asset Basket The reference-asset pool for an ART — multiple currencies, commodities, or other assets that determine the token value. Stablecoins (ART / EMT)
- Multi-Party Computation (MPC) Cryptographic technique splitting a private key across multiple parties — no single party reconstructs the full key. Custody & Safeguarding
- Multi-Signature Wallet A wallet requiring multiple signatures (e.g., 2-of-3, 3-of-5) to authorise a transaction — adds redundancy and security. Custody & Safeguarding
N
- National Bank of Belgium (NBB) Belgium central bank — supervises credit-institution CASPs under Article 60 and AML for financial institutions. EU Regulators & Authorities
- National CASP Register The home NCA's public list of authorised CASPs — feeds into the ESMA-wide register. Process & Authorisation
- National Competent Authority (NCA) The national regulator designated by each EU member state to supervise MiCA — equivalent to "competent authority" in MiCA Article 93. EU Regulators & Authorities
- New York State Department of Financial Services (NYDFS) New York State financial regulator — operates the BitLicense regime, the most rigorous US state crypto framework. Non-EU Regulators
- Node A computer running blockchain software and participating in the network — full node, light node, archive node. DeFi & Crypto Technical
O
- Offeror A person making an offer to the public of crypto-assets — may differ from the issuer in secondary offerings. MiCA Defined Terms
- Office of the Comptroller of the Currency (US) (OCC) US federal banking regulator — supervises national banks including those offering crypto-asset custody. Non-EU Regulators
- Omnibus Account A pooled custody wallet holding multiple clients' crypto-assets together — with internal ledger identifying each client's share. Custody & Safeguarding
- Order Book Manipulation Falsifying order-book signals through layered or fictitious orders — captured under MiCA market-manipulation rules. Market Abuse (MiCA Title VI)
- Own Funds Common Equity Tier 1 capital a CASP must hold continuously — the higher of static class floor or 25% of fixed overheads. MiCA Defined Terms
P
- Par Value Redemption The right of EMT holders to redeem at face value 1:1 with the reference currency — permanent, mandatory, fee-free for retail. Stablecoins (ART / EMT)
- Parent Undertaking An undertaking that controls one or more subsidiary undertakings within a group structure. MiCA Defined Terms
- Passport Notification The Article 65 notification mechanism extending a CASP's authorisation to operate cross-border in another EU member state. Process & Authorisation
- Placing of Crypto-Assets The marketing of newly-issued crypto-assets or crypto-assets already issued, but not admitted to trading, to specified purchasers. MiCA Defined Terms
- Politically Exposed Person (PEP) A natural person entrusted with prominent public functions — triggers Enhanced Due Diligence under AML rules. AML & Travel Rule
- Portfolio Management of Crypto-Assets Managing portfolios in accordance with mandates given by clients on a discretionary client-by-client basis. MiCA Defined Terms
- Private Key The cryptographic key allowing control over a crypto-asset address — possession is ownership. Custody & Safeguarding
- Private Sale A pre-public token sale to a limited group of qualified investors — may be exempt from MiCA white-paper requirements. White Paper & Token Issuance
- Proof of Reserves (PoR) Cryptographic attestation that a CASP holds the crypto-assets it claims to hold on behalf of clients. Custody & Safeguarding
- Proof of Stake (PoS) Consensus mechanism where validators stake crypto-assets to earn rights to validate transactions. DeFi & Crypto Technical
- Proof of Work (PoW) Consensus mechanism where miners compete computationally to validate transactions — used by Bitcoin. DeFi & Crypto Technical
- Public Key The cryptographically-paired key that derives the wallet address — safe to share, used for receiving assets. Custody & Safeguarding
- Public Sale The general public-access phase of a token sale — typically triggers full MiCA white-paper and notification requirements. White Paper & Token Issuance
- Pump and Dump Coordinated price inflation followed by rapid sale at the peak — a textbook MiCA Article 91 market manipulation scheme. Market Abuse (MiCA Title VI)
R
- Reception and Transmission of Orders A CASP receiving client orders for crypto-assets and transmitting them to a third party for execution. MiCA Defined Terms
- Reference Asset The underlying asset (currency, commodity, basket) whose value an ART or EMT tracks. Stablecoins (ART / EMT)
- Regulatory Technical Standards (RTS) EU delegated acts specifying technical detail of MiCA requirements — drafted by ESMA/EBA, adopted by the Commission. Process & Authorisation
- Reserve Asset Individual asset (deposit, bond, money-market instrument) held as part of the ART or EMT backing pool. Stablecoins (ART / EMT)
- Reserve Custodian The independent credit institution or qualifying CASP that holds the ART/EMT reserve assets — bankruptcy-remote from the issuer. Stablecoins (ART / EMT)
- Reverse Solicitation EU client initiates contact with a third-country CASP — narrow exception to the EU-authorisation requirement under MiCA Article 61. Cross-Border & Passport
- Rollup A Layer 2 scaling technique batching transactions before settlement on Layer 1. DeFi & Crypto Technical
S
- Sanctions Screening Real-time checking of customer and counterparty identity against international sanctions lists. AML & Travel Rule
- Second Electronic Money Directive (EMD2) EU directive establishing the e-money regulatory framework — the basis for MiCA Title IV EMT regulation. Stablecoins (ART / EMT)
- Securities and Commodities Authority (UAE) (SCA) UAE federal regulator — supervises virtual assets across the UAE excluding the financial free zones (DIFC, ADGM). Non-EU Regulators
- Securities and Exchange Commission (US) (SEC) US federal securities regulator — asserts jurisdiction over crypto-assets classified as securities under the Howey test. Non-EU Regulators
- Securities and Futures Commission (Hong Kong) (SFC) Hong Kong securities regulator — runs the VATP licensing regime for virtual-asset trading platforms from 2023. Non-EU Regulators
- Security Token Offering (STO) A token sale where the token meets the MiFID II financial-instrument definition — falls under prospectus regime, not MiCA. White Paper & Token Issuance
- Seed Phrase A human-readable representation of a private key (typically 12 or 24 words) — losing it loses access to the wallet. Custody & Safeguarding
- Segregation Required separation of client crypto-assets from CASP own assets under MiCA Article 75. Custody & Safeguarding
- Self-Hosted Wallet A crypto-asset wallet where the user controls the private keys directly — outside CASP custody. AML & Travel Rule
- Servicio Ejecutivo de la Comisión de Prevención del Blanqueo de Capitales (Spain) (SEPBLAC) Spain AML supervisor — engages with CASPs on AML programme adequacy alongside CNMV authorisation. EU Regulators & Authorities
- Significant Asset-Referenced Token An ART designated by the EBA under Article 43 — subject to direct EBA supervision and stricter prudential standards. Stablecoins (ART / EMT)
- Significant E-money Token An EMT designated by the EBA under Article 56 — subject to direct EBA supervision and stricter requirements. Stablecoins (ART / EMT)
- Simplified Due Diligence (SDD) Lighter CDD applicable to low-risk customer categories — limited to specific cases under EU AML framework. AML & Travel Rule
- Sixth Anti-Money Laundering Directive (AMLD6) Directive (EU) 2024/1640 — sets national AML infrastructure rules complementary to the AMLR. AML & Travel Rule
- Smart Contract Self-executing code on a blockchain — the technical primitive underpinning DeFi protocols and tokenisation. DeFi & Crypto Technical
- Spoofing Placing orders with no intent to execute, designed to influence other market participants — prohibited under MiCA. Market Abuse (MiCA Title VI)
- Stress Testing for Reserves Regular scenario analysis of ART/EMT reserves under extreme conditions — required by EBA RTS for significant issuers. Stablecoins (ART / EMT)
- Sub-Custody A CASP using a third-party authorised custodian to hold client crypto-assets — primary liability retained. Custody & Safeguarding
- Subsidiary Undertaking An undertaking controlled by a parent undertaking within a group structure. MiCA Defined Terms
- Supervisory College Multi-NCA + ESMA forum coordinating supervision of significant cross-border CASPs and ART/EMT issuers. Process & Authorisation
- Supervisory Cooperation Formal arrangements between NCAs (and with non-EU regulators) for sharing supervisory information and coordinating action. Cross-Border & Passport
- Suspicious Activity Report (SAR) US terminology for the mandatory AML report — equivalent to the EU STR. AML & Travel Rule
- Suspicious Transaction Report (STR) Mandatory AML report filed by obliged entities to the FIU when transactions raise money-laundering concerns. AML & Travel Rule
- Swiss Financial Market Supervisory Authority (FINMA) Switzerland financial-markets supervisor — runs the DLT Act framework for tokenised securities and crypto. Non-EU Regulators
T
- Third-Country Firm A non-EU crypto-asset service provider — generally must obtain EU authorisation to serve EU clients, with reverse solicitation exception. Cross-Border & Passport
- Token Generation Event (TGE) The technical event when crypto-asset tokens are first created and distributed — typically coincides with the public sale. White Paper & Token Issuance
- Token Sale The primary issuance and offering of crypto-assets to investors or users — covered by MiCA Title II/III/IV depending on type. White Paper & Token Issuance
- Tokenomics The economic design of a token — supply, distribution, utility, incentive mechanisms. White Paper & Token Issuance
- Total Supply The total number of tokens that exist — minted but possibly locked or unavailable for trading. White Paper & Token Issuance
- Trading Platform for Crypto-Assets A multilateral system bringing together multiple third-party buying and selling interests in crypto-assets resulting in contracts. MiCA Defined Terms
- Transfer of Funds Regulation (TFR) Regulation (EU) 2023/1113 — the EU's Travel Rule implementation for crypto-asset transfers. AML & Travel Rule
- Transfer Service for Crypto-Assets The service of transferring crypto-assets on behalf of a natural or legal person from one DLT address or account to another. MiCA Defined Terms
- Transitional Regime Member-state-specific grandfathering rule allowing pre-MiCA crypto businesses to continue operating during authorisation transition. Process & Authorisation
- Travel Rule Requirement that originator and beneficiary identification accompanies crypto-asset transfers between CASPs — EU implementation via TFR. AML & Travel Rule
- Travel Rule Threshold Transfer-value triggers for the EU Travel Rule — no threshold between CASPs; EUR 1,000 for self-hosted wallets. AML & Travel Rule
U
- Ultimate Beneficial Owner (UBO) The natural person at the top of a corporate ownership chain — the substantive person AML rules identify. AML & Travel Rule
- Unhosted Wallet Synonymous with self-hosted wallet — terminology used in EU and FATF documents. AML & Travel Rule
- Unlawful Disclosure Disclosing inside information about crypto-assets outside the normal course of business — prohibited under MiCA Article 90. Market Abuse (MiCA Title VI)
- Utility Token A crypto-asset intended only to provide access to a good or service supplied by its issuer, falling under MiCA Title II. MiCA Defined Terms
V
- Validator A node operator securing a PoS blockchain by staking and validating transactions — earns rewards, faces slashing risk. DeFi & Crypto Technical
- Vesting Schedule The release timeline for locked-up tokens — typically monthly or quarterly distributions over 1-4 years. White Paper & Token Issuance
- Virtual Assets Regulatory Authority (Dubai) (VARA) Dubai dedicated virtual-asset regulator — supervises the Dubai (non-DIFC) virtual-asset service provider regime. Non-EU Regulators
W
- Wallet (Custodial / Non-Custodial) Crypto-asset storage — custodial means a CASP holds the keys; non-custodial means the user holds the keys. DeFi & Crypto Technical
- Warm Wallet An intermediate storage tier between hot and cold — semi-online, used as a withdrawal buffer. Custody & Safeguarding
- Wash Trading Trades creating the false appearance of volume without genuine change of ownership — a form of MiCA market manipulation. Market Abuse (MiCA Title VI)
- White Paper Notification The Article 8 / 19 / 51 process of submitting a crypto-asset white paper to the home NCA before a public offer or admission to trading. Process & Authorisation
- Wrapped Token A tokenised representation of an asset on a different blockchain — e.g., wBTC on Ethereum represents BTC. DeFi & Crypto Technical
Browse by category
MiCA Defined Terms 30 terms
- Advice on Crypto-Assets
- Asset-Referenced Token (ART)
- Close Links
- Competent Authority (NCA)
- Control
- Crypto-asset
- Crypto-Asset Service Provider (CASP)
- Crypto-Asset White Paper
- Custody and Administration of Crypto-Assets
- Distributed Ledger Technology (DLT)
- E-money Token (EMT)
- Exchange of Crypto-Assets for Funds
- Exchange of Crypto-Assets for Other Crypto-Assets
- Execution of Orders on Behalf of Clients
- Group
- Home Competent Authority
- Host Competent Authority
- Issuer
- Management Body
- Offeror
- Own Funds
- Parent Undertaking
- Placing of Crypto-Assets
- Portfolio Management of Crypto-Assets
- Qualifying Holding
- Reception and Transmission of Orders
- Subsidiary Undertaking
- Trading Platform for Crypto-Assets
- Transfer Service for Crypto-Assets
- Utility Token
Stablecoins (ART / EMT) 20 terms
- Algorithmic Stablecoin
- Asset Reserve
- Capital Requirements Regulation (CRR)
- Credit Institution
- Crypto-Backed Stablecoin
- EBA Significance Criteria
- Electronic Money
- Electronic Money Institution (EMI)
- Fiat-Backed Stablecoin
- Interim Suspension
- Liquidity Management (Stablecoin)
- Multi-Asset Basket
- Par Value Redemption
- Reference Asset
- Reserve Asset
- Reserve Custodian
- Second Electronic Money Directive (EMD2)
- Significant Asset-Referenced Token
- Significant E-money Token
- Stress Testing for Reserves
White Paper & Token Issuance 15 terms
Custody & Safeguarding 15 terms
AML & Travel Rule 25 terms
- Anti-Money Laundering (AML)
- Anti-Money Laundering Regulation (AMLR)
- Beneficial Ownership (BO)
- Correspondent Relationship
- Counter-Financing of Terrorism (CFT)
- Customer Due Diligence (CDD)
- Enhanced Due Diligence (EDD)
- Fifth Anti-Money Laundering Directive (5AMLD)
- Financial Action Task Force (FATF)
- Financial Intelligence Unit (FIU)
- High-Risk Third Country
- Know Your Customer (KYC)
- Money Laundering Reporting Officer (MLRO)
- Politically Exposed Person (PEP)
- Sanctions Screening
- Self-Hosted Wallet
- Simplified Due Diligence (SDD)
- Sixth Anti-Money Laundering Directive (AMLD6)
- Suspicious Activity Report (SAR)
- Suspicious Transaction Report (STR)
- Transfer of Funds Regulation (TFR)
- Travel Rule
- Travel Rule Threshold
- Ultimate Beneficial Owner (UBO)
- Unhosted Wallet
Market Abuse (MiCA Title VI) 10 terms
Process & Authorisation 15 terms
- Article 60 Notification
- Authorisation Withdrawal
- CASP Authorisation
- EBA Guidelines
- ESMA Guidelines
- ESMA Register
- Fit and Proper Assessment
- Implementing Technical Standards (ITS)
- Material Change Notification
- National CASP Register
- Passport Notification
- Regulatory Technical Standards (RTS)
- Supervisory College
- Transitional Regime
- White Paper Notification
Cross-Border & Passport 10 terms
EU Regulators & Authorities 24 terms
- Anti-Money Laundering Authority (AMLA)
- Autorité de Contrôle Prudentiel et de Résolution (France) (ACPR)
- Autorité des Marchés Financiers (France) (AMF)
- Autoriteit Financiële Markten (Netherlands) (AFM)
- Banca d'Italia
- Bank of Lithuania (BoL)
- Central Bank of Ireland (CBI)
- Comisión Nacional del Mercado de Valores (Spain) (CNMV)
- Commission de Surveillance du Secteur Financier (Luxembourg) (CSSF)
- Commissione Nazionale per le Società e la Borsa (Italy) (CONSOB)
- Cyprus Securities and Exchange Commission (CySEC)
- De Nederlandsche Bank (DNB)
- Estonian Financial Supervision Authority (EFSA)
- European Banking Authority (EBA)
- European Central Bank (ECB)
- European Insurance and Occupational Pensions Authority (EIOPA)
- European Securities and Markets Authority (ESMA)
- Federal Financial Supervisory Authority (Germany) (BaFin)
- Financial Market Authority (Austria) (FMA)
- Financial Services and Markets Authority (Belgium) (FSMA)
- Malta Financial Services Authority (MFSA)
- National Bank of Belgium (NBB)
- National Competent Authority (NCA)
- Servicio Ejecutivo de la Comisión de Prevención del Blanqueo de Capitales (Spain) (SEPBLAC)
Non-EU Regulators 15 terms
- Canadian Securities Administrators (CSA)
- Commodity Futures Trading Commission (US) (CFTC)
- Financial Conduct Authority (UK) (FCA)
- Financial Crimes Enforcement Network (US) (FinCEN)
- Financial Services Commission (Korea) (FSC)
- Hong Kong Monetary Authority (HKMA)
- Japan Financial Services Agency (JFSA)
- Monetary Authority of Singapore (MAS)
- New York State Department of Financial Services (NYDFS)
- Office of the Comptroller of the Currency (US) (OCC)
- Securities and Commodities Authority (UAE) (SCA)
- Securities and Exchange Commission (US) (SEC)
- Securities and Futures Commission (Hong Kong) (SFC)
- Swiss Financial Market Supervisory Authority (FINMA)
- Virtual Assets Regulatory Authority (Dubai) (VARA)
DeFi & Crypto Technical 20 terms
- Automated Market Maker (AMM)
- Blockchain
- Bridge (Cross-Chain)
- Consensus Mechanism
- Decentralised Autonomous Organisation (DAO)
- Decentralised Finance (DeFi)
- Governance Token
- Layer 1 (L1)
- Layer 2 (L2)
- Liquidity Pool
- Node
- Proof of Stake (PoS)
- Proof of Work (PoW)
- Rollup
- Smart Contract
- Validator
- Wallet (Custodial / Non-Custodial)
- Wrapped Token
- Yield Farming
- Zero-Knowledge Proof (ZK)