Crypto assets in a crypto world are also referred to as digital assets but these digital assets are different from traditional digital assets. For instance, a JPEG file is a digital asset but it is not a crypto asset as it does not involve any cryptography (encryption) and usage of blockchain. Use of encryption and blockchain ensures that details about the crypto assets are correct, accurate and up to the date. Authenticity and ownership of such crypto assets is automatically established in a trusted manner and these details are publicly available in a decentralised manner on the blockchain. So crypto assets are different from traditional digital assets but if cryptography and methods of blockchain are applied to a JPEG file, it becomes a type of crypto asset.
Crypto assets are also different from crypto currencies like bitcoin. Crypto asset is a wider term and area and it covers crypto currencies and other crypto instruments like crypto tokens. In short, all crypto currencies are crypto assets but not all crypto assets are crypto currencies.
We at TLCECBI would use the terms crypto assets, digital assets and crypto currencies accordingly. The term crypto goods would be used synonymously and interchangeably with the term crypto assets by us. Unless specifically mentioned by us, crypto assets are treated and discussed by us as different from digital assets and any reference to digital assets would mean traditional digital assets like images, documents, etc and not crypto assets.
Crypto tokens generally refers to a unit of value for a crypto asset that is managed by a smart contract and an underlying distributed ledger based on blockchain. Tokens are the primary means of transferring and storing value on a blockchain network—most often Ethereum. Tokens can be classified as either fungible or non-fungible, depending upon the needs and requirements of the stakeholders. Tokenisation is the act of converting the value of a tangible or intangible asset into a token.
More about crypto assets, crypto currencies, blockchain, Ethereum, fungible and non-fungible tokens, etc would be discussed by us at dedicated portals and spaces.
There is no uniformity of laws across the globe on crypto assets and crypto currencies. in fact, regulation of crypto assets and crypto currencies is very complicated and controversial in nature. Many nations have already banned crypto currencies while others are in the process of banning them. If you wish to comply with techno legal requirements of crypto assets and crypto currencies globally, you must follow our proposed blog on crypto law that would be launched soon.
You may contact us for our professional techno legal services in fields like crypto assets and crypto currencies, including our unique online dispute resolution (ODR) services for crypto related disputes resolution.