EU Draft Regulation Markets in Crypto Assets
Article is HUGE! 167 pages.
**follow me on twitter** **@cryptolink5**[](https://twitter.com/cryptolink5)
I WILL POST FULL LINK ON BOTTOM OF ARTICLE lll
**Definitions**
1. For the purpose of this Regulation, the following definitions apply:
(a) ‘distributed ledger technology’ or ‘DLT’ means a class of technologies which
support the distributed recording of encrypted data;
(b) ‘crypto-asset’ means a digital representation of value or rights, which may be
transferred and stored electronically, using distributed ledger or similar
technology;
© ‘asset-referenced tokens’ means a type of crypto-assets whose main purpose is
to be used as a means of exchange and that purports to maintain a stable value
by referring to the value of several fiat currencies, one or several commodities
or one or several crypto-assets, or a combination of such assets;
(d) ‘electronic money token’ or ‘e-money token’ means a type of crypto-assets
whose main purpose is to be used as a means of exchange and that purports to
maintain a stable value by being denominated in (units of) a fiat currency.
(e) ‘significant electronic money token’ means a type of electronic money tokens
that has been classified as significant in accordance with Article XX;
(f) ‘significant asset-referenced token’ means a type of asset-referenced tokens that
has been classified as significant in accordance with Article 14;
(g) ‘utility token’ means a type of crypto-assets which are intended to provide access
digitally to an application, services or resources available on a distributed ledger
and that are accepted only by the issuer of that token to grant access to such
application, services or resources available;
(h) ‘issuer of crypto-assets’ means a person who offers crypto-assets to third parties;
(i) ‘issuer of asset-referenced tokens’ means a person who offers asset-referenced
tokens to third parties;
(j) ‘issuer of significant asset-referenced tokens’ means a person who offers
significant asset-referenced tokens to third parties;
(k) “issuer of electronic money tokens’ means a person who publicly offers
electronic money tokens to third parties;
(l) ‘issuer of significant electronic money tokens’ means a persons who publicly
offers significant electronic money tokens to third parties;
(m) ‘offering to the public’ means an offering to acquire a crypto-asset in exchange
for fiat currency or other crypto-assets;
(n) ‘crypto-asset service provider’ means any person whose occupation or business
is the provision of one or more crypto-asset services to third parties on a
professional basis;
(o) ‘crypto-asset service’ means any of the services and activities listed below
relating to any crypto-assets:
(a) the custody and administration of crypto-assets on behalf of third parties;
(b) the operation of a trading platform for crypto-assets;
© the exchange of crypto-assets for fiat currency;
(d) the exchange of crypto-assets for other crypto-assets;
(e) the execution of orders for crypto-assets on behalf of third parties;
(f) the placement of crypto-assets;
(g) the reception and transmission of orders for crypto-assets on behalf of
third parties;
(h) the advice on crypto-assets;
(i) the execution of payment transactions in asset-referenced tokens.
(p) ‘the custody and administration of crypto-assets on behalf of third parties’ means
safekeeping or controlling, on behalf of third parties, crypto-assets or the means
of access to such crypto-assets, where applicable in the form of private
cryptographic keys;
(q) ‘the operation of a trading platform for crypto-assets’ means managing one or
more crypto-assets trading platforms, within which multiple third-party buying
and selling interests for crypto-assets can interact in a manner that results in a
contract, either by exchanging one crypto-asset for another or a crypto-asset for
currency that is legal tender;
® ‘the exchange of crypto-assets for fiat currency’ means concluding purchase or
sale contracts concerning crypto-assets with third parties against currency that is
legal tender, by using proprietary capital;
(s) ‘the exchange of crypto-assets for other crypto-assets’ means concluding
purchase or sale contracts concerning crypto-assets with third parties against
other crypto-assets, by using proprietary capital;
(t) ‘the execution of orders for crypto-assets on behalf of third parties’ means
concluding agreements to buy, sell or subscribe for one or more crypto-assets on
behalf of third parties;
(u) ‘the placement of crypto-assets’ means the marketing of newly-issued cryptoassets or of crypto-assets that are already issued, but not admitted to trading on
a trading platform for crypto-assets, to specified purchasers and which does not
involve an offering to the public or an offering to existing holders of the issuer’s
crypto-assets;
(v) ‘the reception and transmission of orders for crypto-assets on behalf of third
parties’ means the reception from a person of an order to buy, sell or subscribe
for crypto-assets and the transmission of that order to a third party for execution;
(w) ‘the advice on crypto-assets’ means ‘the act of offering, giving or agreeing to
give personalised or specific recommendations to a third party, either at the third party’s request or on the initiative of the crypto-asset service provider providing
the advice, concerning the acquisition or the sale of one or more crypto-assets,
or the use of crypto-asset services;
(x) ‘payment transactions in asset-referenced tokens’ means the activity, conducted
on behalf of one or several natural or legal persons, of transferring an assetreferenced token from one address or registered position used to receive cryptoassets to another, irrespective of any underlying obligations between the sender
and the recipient;
(y) ‘management body’ means the body or the bodies of an issuer of assetreferenced tokens or significant asset-referenced tokens, of an issuer of e-money
tokens or significant e-money tokens, or of a crypto-asset provider, which are
appointed in accordance with national law, and which are empowered to set the
entity’s strategy, objectives, the overall direction and which oversee and monitor
management decision-making and include persons who directly direct the
business of the entity.
(z) ‘credit institution’ means a credit institution as defined in point (1) of Article
4(1) of Regulation (EU) No 575/201335;
(aa) ‘qualified investors’ means ‘qualified investors’ within the meaning of Article
2(e) of Regulation (EU) 2017/112936
.
(bb) ‘reserve assets’ means the basket of fiat currencies, commodities or cryptoassets, backing the value of an asset-referenced tokens, or the investment of such
assets.
(cc) ‘home Member States’ means:
(a) where the issuer of crypto-assets has its registered office or a branch in the
EU, the Member States where the issuer of crypto-assets has its registered
office or a branch;
(b) where the issuer of crypto-assets with no registered office in the EU has
two or more branches in the EU, the home Member State is determined at
the choice of the issuer among those of the Member States where the issuer
has branches. This choice is definitive.
© for issuers of crypto-assets established in a third country with no branch in
the EU, the Member State where the crypto-assets are intended to be
offered to the public for the first time or where the first application for
admission to trading on a trading platform for crypto-assets is made, at the
choice of the issuer. This choice is definitive.
(d) for issuers of asset-referenced tokens, the Member States where the issuer
of crypto-assets has its registered office;
(e) for issuers of electronic money tokens, the Member States where such an
issuer of electronic money tokens is authorised as a credit institutions or
as a e-money institution under Directive 2009/110/EC;
(f) for crypto-asset service providers, the Member States where the issuer of
crypto-assets has its registered office;
(dd) ‘host Member States’ means the Member State where an offering of cryptoassets to the public is made or an admission to trading on a trading platform on
a trading platform for crypto-assets is sought, or where a crypto-asset service is
provided, when different from the home Member State;
(ee) ‘competent authority’ means:
- the authority, designated by each Member State in accordance with Article
74 for issuers of crypto-assets, issuers of asset-referenced crypto-assets and
crypto-asset service providers;
- the authority, designated by each Member State, for the application of
Directive 2009/110/EC.
(ff) ‘commodity’ means ‘commodity’ under Article 2(6) of the Commission
Delegated Regulation (EU) 2017/56537;
(gg) ‘qualifying holding’ means any direct or indirect holding in an issuer of assetreferenced tokens or in a crypto-asset service provider which represents at least
10% of the capital or the voting rights, as set out in Articles 9 and 10 of Directive
2004/109/EC of the European Parliament and of the Council38
, taking into
account the conditions regarding aggregation thereof laid down in Article 12(4)
and (5) of that Directive, or which makes it possible to exercise a significant
influence over the management of the investment firm in which that holding
subsists.
2. The Commission shall be empowered to adopt delegated acts in accordance with
Article 109 to specify technical elements of the definitions laid down in paragraph 1,
to adjust them to market developments, technological developments and experience of
behaviour that is prohibited under Title V and to ensure the uniform application of this
Regulation.
This was just Article number 3, this is just definition of what they meant to say when they used specific terms they did not want to disclose...if you can read between lines this is all you need..more or less.
big thanks to **@xrpyoda** on twitter
FULL Article: