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Recital 16

Recital 16

(16)To be able to properly monitor the integrity and stability of the markets in crypto-assets, competent authorities need reliable, consistent and standardised information on the crypto-assets that are traded. Such information should enable them to classify the individual crypto-asset being traded according to internationally established principles. Such classification should also enable authorities to connect data on white papers with data on transactions and orders in the same crypto asset. The ISO code for the Classification of Financial Instruments (CFI) is an international standard used for classifying financial instruments. However, crypto-assets that are not financial instruments cannot currently be described using the CFI code. The ISO CFI is being revised to accommodate the classification of crypto-assets, but this revision will not be finalized before the application of this Regulation. Therefore, until such revision is completed, an interim classification indicating the type of crypto-assets (crypto-assets other than asset-referenced tokens and e-money tokens, asset-referenced tokens, and e-money tokens) should be used.

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