Qualifying cryptoasset26F

1

 Subject to sub-paragraph (3), a “qualifying cryptoasset” is any cryptoasset which is—

a

fungible; and

b

transferable.

2

 For the purposes of sub-paragraph (1)(b), the circumstances in which a cryptoasset is to be treated as “transferable” include where—

a

it confers transferable rights; or

b

a communication made in relation to the cryptoasset describes it as being transferable or conferring transferable rights.

3

A cryptoasset does not fall within sub-paragraph (1) if it is—

a

a controlled investment falling within any of paragraphs 12 to 26E or, so far as relevant to any such investment, paragraph 27;

b

electronic money;

c

fiat currency;

d

digitally issued fiat currency; or

e

a cryptoasset that—

i

cannot be transferred or sold in exchange for money or other cryptoassets, except by way of redemption with the issuer; and

ii

can only be used in a limited way and meets one of the following conditions—

aa

it allows the holder to acquire goods or services only from the issuer;

ab

it is issued by a professional issuer and allows the holder to acquire goods or services only within a limited network of service providers which have direct commercial agreements with the issuer; or

ac

it may be used only to acquire a very limited range of goods or services.

4

In this paragraph—

• “cryptoasset” means any cryptographically secured digital representation of value or contractual rights that—

  1. a

     can be transferred, stored or traded electronically, and

  2. b

     uses technology supporting the recording or storage of data (which may include distributed ledger technology);

• “digitally issued fiat currency” means fiat currency issued in digital form;

• “electronic money” has the meaning given by regulation 2(1) (interpretation) of the Electronic Money Regulations 20115.