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Concepts
The 7 core concepts + 2 cross-cutting dimensions (jurisdiction, tax) you find in a regulatory report. Knowing the difference between a law, a licence and a regulator saves you a lot of confusion.
Looking for a specific term? 🔍 Browse the glossary →
🔗How the concepts fit together
In a given 🗺️Jurisdiction:
- A company issues or operates a 🪙Token type on some 🔧Infrastructure (DeFi, custody, XRPL primitives…), and must obtain 🪪Licences + meet ongoing ✅Obligations (KYC, AML, reporting…).
- Those licences stem from 📜Regimes (MiCA, GENIUS Act, TVTG…), are granted by 🏛️Regulators (AMF, SEC, VARA…), and grey zones are settled by 💡Doctrine (Howey Test, case law).
- And every flow is subject to the local 💰Tax regime (capital gains, withholding, corporate tax, VAT) — for both the company and its end-users.
| Concept | What it is | When it applies | Examples |
|---|---|---|---|
INPUTS — What you are building What your startup issues or operates. These choices determine everything downstream. | |||
| 🪙Token type Token type How the asset is classified — drives which regime applies Topic page → | How a digital asset is classified by a regulator. Determines which regime applies to the token itself. | At issuance and throughout the token's life. Can evolve (a security token may become a commodity as the network decentralises). | EMT, ART, S-EMT, S-ART (MiCA), Utility Token, Security Token (Howey), RWA, NFT, Stablecoin, DPT (Singapore), MPT (XLS-33). |
| 🔧Infrastructure Infrastructure Technical building blocks that shape how regulation applies Topic page → | Technical or ecosystem concepts not themselves regulated but that shape how regulation applies. | Reference terms you encounter constantly — DeFi vs CeFi, on-chain vs off-chain, XRPL primitives, etc. | TradFi, CeFi, DeFi, DAO, Smart Contract, DLT, Trust Line, IOU, Escrow, SignerList, MPC, TSS. |
OUTPUTS — What you must do The concrete compliance actions and deliverables. The core for a founder. | |||
| 🪪Licence Licence framework The concrete authorizations you must obtain Topic page → | The concrete authorization you must obtain to operate legally. The operational consequence of a law. | When you perform a regulated activity (exchange, custody, stablecoin issuance…). 3–36 months depending on jurisdiction. | CASP (MiCA), MTL (state-by-state US), BitLicense (NY), VASP (FATF / Dubai), DASP / PSAN (France), EMI. |
| ✅Obligation Compliance obligation Daily compliance duties (KYC, AML, Travel Rule…) Topic page → | A concrete operational duty imposed by a law or regulator. Something you must DO on a daily basis. | Every day of operation. Captured in policies, processes and systems (KYC, AML, monitoring, reporting). | KYC, KYB, AML, CFT, Travel Rule (FATF R.16), SAR filings, OFAC screening. |
CONTEXT — Where, with whom, under what law The framing around the outputs. Helps you navigate grey zones. | |||
| 🏛️Regulator Regulator / Authority The body that supervises and issues the licence Topic page → | The official body that supervises your activity, issues the licence and enforces compliance. | Always. You report to them, they inspect you, they approve your licence and can revoke it. | AMF / ESMA (EU), SEC / CFTC / FinCEN / OCC (US), VARA (Dubai), MAS (Singapore), SFC (Hong Kong), FCA (UK), FINMA (Switzerland), FMA (Liechtenstein). |
| 📜Regime Law / Regulation The legal text that grounds it all — scope & territorial reach Topic page → | The legal text itself — the statute, regulation, directive or act passed by a legislature. Grounds everything else. Each regime has a scope: 📍 local (only if you operate physically there), 🌐 extraterritorial (applies when you serve users, even if based elsewhere), or 🌍 global standard (adopted or transposed by most jurisdictions). | Applies whenever in force. Little to no choice for your startup — it just applies based on jurisdiction, activity, and scope. | MiCA (EU 2023/1114, 🌐 extraterritorial), GENIUS Act (US federal 2025, 📍 local), BitLicense (NY, 📍 local), TVTG (Liechtenstein 2020), FATF Travel Rule (🌍 global standard), BSA, PSD2. |
| 💡Doctrine Doctrine / Legal Test Legal tests and case law that interpret the statute Topic page → | A legal test or court ruling that interprets the law. Fills gaps when the statute is silent. | When assessing grey zones — especially in the US where case law plays a major role. | Howey Test (SEC v. W.J. Howey Co., 1946). SEC v. Ripple (2023). |
| 🗺️Jurisdiction Territorial scope The territory whose regulator has authority over you Topic page → | A political/legal territory whose regulatory body has authority over your activity. Not a concept like the 7 above — rather a cross-cutting dimension on which every concept above is evaluated. | Everywhere. Every licence, obligation, regime and regulator is scoped to a jurisdiction. Choosing the right one is often half the compliance strategy. | EU/France, USA, Singapore, UAE Dubai, Cayman Islands, Luxembourg, Switzerland, UK, Ireland, Liechtenstein, Malta, Nigeria, South Africa, Kenya… |
| 💰Tax Tax treatment How crypto is taxed — for the company and end-users See per jurisdiction → | How a jurisdiction taxes crypto activity — capital gains, income, withholding (TDS), VAT/GST, corporate tax, wealth tax. A parallel mini-system with its own regime (tax code), regulator (tax authority) and obligations (annual returns, TDS withholding, 1099-DA, DAC8 reporting). | Two angles: (1) your company P&L (corporate tax + VAT on services), (2) your users' tax exposure (capital gains, TDS at every transaction in India, 30% flat rate, etc.) which often shapes product design and pricing. | 🇮🇳 30% VDA tax + 1% TDS · 🇺🇸 short/long-term CGT + Form 1099-DA · 🇫🇷 PFU 30% · 🇨🇭 no CGT for individuals + wealth tax · 🇦🇪 9% CT + 0% personal · 🇰🇾 / 🇻🇬 zero-tax · 🇰🇪 3% Digital Asset Tax · DAC8 / OECD CARF. |
📏Scope of regimes — a cross-cutting attribute
Every regime (see 📜 Regime above) has a scope that describes how it reaches you. Not a 9th standalone concept — just an attribute applied to regimes. Three typical scopes:
📍Local
Territorial. Applies only if you incorporate or operate physically there. Ex: BitLicense only covers businesses operating in New York.
🌐Extraterritorial
Applies whenever you serve or target users of that jurisdiction, even if based elsewhere. Ex: MiCA applies to any business serving EU users.
🌍Global standard
International standard adopted or transposed by most jurisdictions. Ex: FATF Travel Rule, KYC/AML principles.
All terms grouped by concept
🪙Token type14
How the asset is classified — drives which regime applies
🔧Infrastructure30
Technical building blocks that shape how regulation applies
🪪Licence48
The concrete authorizations you must obtain
CASPDASPPSANEMIMSBMTLBitLicenseVASPAFSLDCEDABADABA Class FDABA Class MDABA Class TTrust CharterNY Trust CharterSouth Dakota Trust CharterDAOPDACSARIPCAESPMTFMPISPIVATPBroker-DealerTransfer AgentATSOCC charterPFSCryptoasset registrationCrypto Custody licenceCrypto Custody registrationTVTG Token IssuerJONUM authorizationDLT frameworkVASP Class IDFSA licenceADGM Financial ServicesPre-Registration UndertakingKIPITFIFPEPFAKPSAVBSPPSADLicence
🏛️Regulator84
The body that supervises and issues the licence
AMFESMANCAANJBaFinCSSFMFSACBILietuvos bankasFMAFinCENOFACSECCFTCOCCNYDFSFATFFINMAVQFSROMASSFCHKMAFSAJVCEAFSCKoFIUASICAPRAAUSTRACFIU-INDFCAVARADFSACIMABMAFINTRACCSAOSCIIROCBCBCVMCMNISABoIIMPACMISABappebtiOJKBISEC NigeriaCBNNFIUCBKCMAFSCASARBFICBoGSEC GhanaFIC GhanaBEACCOBACANTICCNVBCRAUIFCNADBCRNLRCBCLBRegulatorCNMVSEPBLACDGOJKNFGIIFNBPCNBVBanxicoSPKBDDKTCMBMASAK
📜Regime21
The legal text that grounds it all — scope & territorial reach
💰Tax23
How crypto is taxed — for the company and end-users
Click any term to open its definition in the glossary.