Page 27 - Dittmar Quarterly Q1 2019
P. 27

 WHAT IS A CRYPTO ASSET?
ESMA defines crypto-asset as a type of private asset that depends primarily on cryptography and distributed ledger technology as part of its perceived or inherent value and that is neither issued nor guaranteed by a central bank.
ESMA DIVIDES CRYPTO ASSETS
INTO FOUR CATEGORIES:
• Investment-type crypto assets have some profits
rights attached, similar to equities, equity-like
instruments or non-equity instruments.
• Utility-type crypto assets provide some utility or
consumption rights, such as the ability to use them to access or buy some of the services or products offered by the ecosystem.
• Payment-type crypto assets have no tangible value except for the expectation they may serve as a means of exchange or payment for goods or services external to the ecosystem.
• Hybrids of the above types of crypto assets.
This classification is important because it determines the rights and obligations of the crypto asset’s issuer and other associated parties. For example, if an investment-type crypto asset classifies as a transferable security or other financial instrument, then the full set of EU financial regulations may apply. In Finland, financial markets are supervised by the Finnish Financial Supervisory Authority.
  -120 Years of Thinking Ahead-
In addition, from a Finnish law perspective, uncertainty remains around tax treatment of investments in crypto-assets, in particular as the Finnish tax authority is yet to issue guidelines on the taxation of crypto assets constituting MiFID financial instruments. In practice, it is currently necessary to seek a case-specific advance tax ruling. For Finnish companies to further develop applications relying on crypto technologies and Finland to become an attractive jurisdiction for innovative financial services developed on a sustainable basis, clarity of such investments’ tax treatment is essential.
D&I’s lawyers regularly advise clients on matters relating to conduct of regulated activities, licensing requirements and blockchain technology and are happy to discuss any questions you may have.
Kristian Karlsson, Senior Attorney Tuomas Tiensuu, Senior Associate Tuomas Haavikko, Associate



















































































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