Crypto asset

A digital asset whose ownership is recorded on a blockchain

In detail

A crypto asset is a digital asset whose ownership is recorded on a blockchain ledger. Unlike money issued by a state, nothing stands behind its value, and prices tend to move more than stocks do. The name varies by country, and it is also called virtual currency or cryptocurrency. The firms you buy and sell through are subject to registration and similar rules that differ by country.

Example

If one bitcoin costs $100,000, then $100 buys 0.001 bitcoin.

Differences by country

Japan — Japan renamed them from virtual currency to crypto asset in a 2020 revision of the law, and trading goes through exchange operators registered with the Financial Services Agency.

South Korea — Korean law calls them virtual assets, and operators may not do business without reporting to the Korea Financial Intelligence Unit (since 25 March 2021).

Related terms

Blockchain Bitcoin Wallet

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For learning, not investment advice. Decisions are your own.