Crypto-Asset Regulation · glossary
The firm's own capital, which stays in the business to absorb losses, and clients' money never counts. MiCA sets it at the higher of the class floor and a quarter of last year's fixed overheads, the costs paid whether or not anyone trades. Halcyon must hold €1,600,000 and held €2,100,000. Definition: Own funds · Binder §3.1 · Chapter 1 · Chapter 3
Explained in Chapter 1, What a Crypto-Asset Is, and Why the State Cares, of Crypto-Asset Regulation.
Also explained in Venture Deals.
One failure can spread. When a token that many firms hold fails, everyone who trusted it loses, so MiCA is stricter with tokens that promise a stable value. It also makes every CASP keep capital of its own, called own funds, so that losses fall on the firm's owners first (Article 67). Halcyon must hold €1,600,000, and Chapter 3 shows how that figure is set.Read Chapter 1, What a Crypto-Asset Is, and Why the State Cares →
Chapter 1 and this glossary are open to everyone; the whole edition is free to read with a free account until 31 January, and it stays open to an account opened by then.Chapter 1 of Crypto-Asset Regulation and this glossary are free to read; the rest of the edition is in the Library, at €12 a month or €79 for a Year Pass.
the capital Halcyon must hold at all times: the higher of the Annex IV class minimum and one quarter of the preceding year's fixed overheads (Article 67);Read the definition in the document →
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