This Practice Note introduces the concepts of Web 3.0, digital assets and cryptoassets. Regulators and tax authorities, as well as commentators, refer variously to cryptoassets, digital currencies, virtual currencies, cryptocurrencies and crypto tokens/digital tokens, and it is not always clear whether they are using the terms interchangeably or with the specific meaning of each in mind. In this Practice Note, the term ‘cryptoasset’ is used as a generic term for cryptocurrencies, virtual currencies, virtual assets or digital tokens. A virtual currency is a digital representation of value that is neither issued by a central bank or a public authority, rarely attached to a fiat currency, but is accepted by a growing number of natural or legal persons as a means of payment and can be transferred, stored or traded electronically. Cryptocurrencies are virtual currencies which are secured using cryptography. Virtual and cryptocurrencies are distinguishable from money that derives its value from government regulation or law (fiat currency). These non-traditional currencies are also distinguishable from electronic money (e-money) which is the digital representation of fiat currency. Cryptocurrencies are decentralised and convertible. Examples of cryptocurrency include Bitcoin, Ethererium and Lifecoin. Digital tokens are second generation applications of blockchain technology that go beyond the functionality of cryptocurrencies.