What are crypto-assets?

• Electronic money tokens (EMT) – A type of crypto-asset designed to maintain a stable value by being pegged to a single official currency.
• Asset-referenced tokens (ART) – A type of crypto-asset that maintains a stable value by referencing another value or right, or a combination of both. ARTs can reference one or multiple currencies but are not considered electronic money tokens.
• Other crypto-assets – Any other types of crypto-assets that do not fall under the EMT or ART categories.

Crypto-assets covered by existing EU financial regulations, such as MiFID II, are excluded from MiCA’s scope, as they are already subject to other regulatory frameworks.

MiCA does not apply to crypto-assets that are unique and not interchangeable with other crypto-assets. In practice, these are often referred to as NFTs (Non-Fungible Tokens). However, not all NFTs are exempt, for example, an NFT that is divisible into multiple interchangeable parts may still be subject to MiCA.

MiCA primarily applies to centralized crypto-asset service providers. Decentralized protocols and platforms that operate without centralized control are not within MiCA’s scope.

Mining and staking activities related to crypto-assets are not directly regulated under MiCA. These activities, which involve validating transactions and securing blockchains, fall outside MiCA’s framework but may still be subject to energy regulations or national legal frameworks.

MiCA does not contain explicit provisions on crypto-asset lending, although this activity could be regulated under existing financial regulations or be subject to future regulatory initiatives depending on market developments.

Crypto-assets enable fast and low-cost cross-border transactions, which can be advantageous for both individuals and businesses, especially for transfers outside the EU.

Crypto-assets represent a new class of financial assets that can complement traditional investments. They allow investors to diversify their portfolios and potentially achieve higher returns, offering new opportunities in both personal and corporate investments. However, they are highly volatile, and the NBS strongly advises investing only amounts that consumers can afford to lose.

Unlike some other alternative financial products, crypto-assets are regulated. From December 30, 2024, the National Bank of Slovakia (NBS) will grant licenses for crypto-asset-related activities and oversee this sector under MiCA regulation. MiCA does not regulate crypto-assets themselves but ensures transparency in their issuance and establishes service provision standards comparable to other capital market entities.

Crypto-assets pose risks such as technical failures, cyber threats, and potential fraud, which, if the sector grows significantly, could impact financial stability.