Annex | CRITERIA FOR THE SELF-ASSESSMENT OF CRYPTO-ASSET SERVICE PROVIDERS

1. The nature of the crypto-asset service providermeans a legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is allowed to provide crypto-asset services in accordance with Article 59;, based on the following elements:
  
  the class designation referred to in Annex IV to Regulation (EU) 2023/1114;
  
  the average liquidity levels, or market depth, of crypto-assetsmeans a digital representation of a value or of a right that is able to be transferred and stored electronically using distributed ledger technology or similar technology; available to trade on a trading platform for crypto-assetsmeans a digital representation of a value or of a right that is able to be transferred and stored electronically using distributed ledger technology or similar technology;, where applicable;
  
  the role of the crypto-asset service providermeans a legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is allowed to provide crypto-asset services in accordance with Article 59; in the financial system, including whether the crypto-asset service providermeans a legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is allowed to provide crypto-asset services in accordance with Article 59; operates a trading platform for crypto assets and whether crypto-assetsmeans a digital representation of a value or of a right that is able to be transferred and stored electronically using distributed ledger technology or similar technology; traded on its platform are traded on other trading platforms for crypto-assetsmeans a digital representation of a value or of a right that is able to be transferred and stored electronically using distributed ledger technology or similar technology;.
2. Scale, by assessing the impact of the crypto-asset service providermeans a legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is allowed to provide crypto-asset services in accordance with Article 59; on the orderly functioning of the markets based on the following elements, where applicable:
  
  whether the crypto-asset service providermeans a legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is allowed to provide crypto-asset services in accordance with Article 59; qualifies as significant as referred to Article 85 of Regulation (EU) 2023/1114;
  
  the number of countries in which the crypto-asset service providermeans a legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is allowed to provide crypto-asset services in accordance with Article 59; is conducting business activity;
  
  the number of clientsmeans any natural or legal person to whom a crypto-asset service provider provides crypto-asset services;;
  
  the number of active users;
  
  the value of crypto-assetsmeans a digital representation of a value or of a right that is able to be transferred and stored electronically using distributed ledger technology or similar technology; held in custody;
  
  the volume of transactions on a trading platform for crypto-assetsmeans a digital representation of a value or of a right that is able to be transferred and stored electronically using distributed ledger technology or similar technology;;
  
  the number of transfers of crypto-assetsmeans a digital representation of a value or of a right that is able to be transferred and stored electronically using distributed ledger technology or similar technology; conducted on behalf of clientsmeans any natural or legal person to whom a crypto-asset service provider provides crypto-asset services;;
  
  the number of orders executed on behalf of clientsmeans any natural or legal person to whom a crypto-asset service provider provides crypto-asset services;.
3. Complexity, by assessing the following elements, where applicable:
  
  the structure of the crypto-asset service providermeans a legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is allowed to provide crypto-asset services in accordance with Article 59; in terms of ownership and governance, and its organisational, operational, technical, physical, and geographical presence;
  
  the level of outsourcing of the crypto-asset service providermeans a legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is allowed to provide crypto-asset services in accordance with Article 59;, and in particular whether any critical or important operational functions have been outsourced;
  
  the number and type of distributed ledgersmeans an information repository that keeps records of transactions and that is shared across, and synchronised between, a set of DLT network nodes using a consensus mechanism; used in the execution of services;
  
  the number of DLT network nodesmeans a device or process that is part of a network and that holds a complete or partial replica of records of all transactions on a distributed ledger; the crypto-asset service providermeans a legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is allowed to provide crypto-asset services in accordance with Article 59; operates on one or multiple distributed ledgermeans an information repository that keeps records of transactions and that is shared across, and synchronised between, a set of DLT network nodes using a consensus mechanism;(s);
  
  the number and type of smart contracts deployed and maintained by the crypto-asset service providermeans a legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is allowed to provide crypto-asset services in accordance with Article 59;;
  
  how the private cryptographic keys of clientsmeans any natural or legal person to whom a crypto-asset service provider provides crypto-asset services; or other means of accessing crypto-assetsmeans a digital representation of a value or of a right that is able to be transferred and stored electronically using distributed ledger technology or similar technology; are secured under safekeeping;
  
  the use of software and hardware-based custodial wallets or wallets that secure cryptographic keys using multiple fiduciaries.
For the purposes of points (b)(iii) to (viii), the crypto-asset service providermeans a legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is allowed to provide crypto-asset services in accordance with Article 59; shall use for the self-assessment the daily average over a one-year reference period.