Scope of this Practice Note

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.

As can be seen from section What are digital assets and cryptoassets? below, while all cryptocurrencies are cryptoassets and all cryptoassets are digital assets, not all digital assets are cryptoassets, and not all crypto assets are cryptocurrencies.

This Practice Note focuses predominantly on ‘cryptoassets’ rather than the wider ‘digital assets’, as specific regulatory requirements in the digital space have largely been limited to cryptoassets. The Practice Note also briefly discusses regulatory initiatives relating to the regulation of Web 3.0.

This Practice Note explores common terms associated with cryptoassets and provides