Glossary

Speak EU crypto fluently.

14 plain-language definitions across MiCA, mechanics, yield, platforms, on-ramps and tax — written and checked against primary sources.

Checked 24 JUL 2026 against primary sources

A

APR vs APY

APR (annual percentage rate) is the simple annual yield without compounding; APY (annual percentage yield) includes the effect of reinvesting payouts. Comparing two products fairly requires the same measure.

ART

Asset-referenced token — a MiCA category for crypto-assets that reference a basket of currencies, commodities, or other assets rather than a single currency. ARTs face authorisation, reserve, and — if significant — volume-cap requirements.

Attestation

A report — typically monthly, by an independent accountant — confirming that a stablecoin issuer’s reserves match or exceed the tokens in circulation. An attestation covers a point in time; it is not a full audit.

C

CASP

Crypto-asset service provider — a firm offering services such as exchange, custody, or execution of crypto-assets in the EU. Under MiCA, CASPs must be authorised by a national competent authority.

Custodial

A service where the provider holds your private keys — and therefore your coins — on your behalf. Convenient, but you carry counterparty risk on the provider.

D

DAC8

The eighth Directive on Administrative Cooperation — EU rules requiring CASPs to report users’ crypto transactions to tax authorities for automatic exchange between member states. It applies from 1 January 2026.

E

EMT

E-money token — a crypto-asset under MiCA that maintains a stable value by referencing one official currency. Only credit or e-money institutions may issue EMTs, and holders can redeem them at par.

See also: MiCA · Redemption right · Peg

K

KYC

Know-your-customer — the identity checks CASPs must perform under EU anti-money-laundering rules before opening an account or processing transactions.

M

MiCA

Markets in Crypto-Assets — the EU’s unified regulatory framework (Regulation (EU) 2023/1114) for crypto-asset issuance and services. It sets the rules for stablecoins, issuers, and service providers across all member states.

N

NCA

National competent authority — the regulator in each EU member state responsible for authorising and supervising CASPs and token issuers, such as BaFin in Germany or the ACPR in France.

P

Passporting

The mechanism that lets a CASP authorised in one EU member state offer its services across the entire single market without further national licences.

Peg

The target value a stablecoin is designed to track, usually one unit of a fiat currency such as the euro or the US dollar. Holding the peg depends on reserves, redemption mechanics, and market confidence.

See also: EMT · Attestation · Redemption right

R

Redemption right

The holder’s legal claim to exchange a stablecoin back for its peg value with the issuer. Under MiCA, EMT holders can redeem at par at any time.

S

Self-custody

Holding your own private keys, typically in a hardware or software wallet, so no third party can freeze or lose your funds. You alone are responsible for backups and security.