Art. 1 Definitions | RTS on record keeping | MiCA

This is a foundational definitions article that establishes the precise meaning of three key terms used throughout the Regulation: "transaction," "undertaking a transaction," and "executing a transaction." It is a purely interpretive article, setting the conceptual boundaries that underpin all subsequent record-keeping obligations.

Notably, the scope of what counts as a "transaction" is deliberately limited by reference to Regulation (EU) 2023/1114 (MiCA), meaning certain categories of crypto-assets are excluded from the outset.

Important points:

Understand that "transaction" in this Regulation excludes crypto-assets falling under Article 2(3) and (4) of MiCA, meaning the record-keeping obligations that follow do not apply universally to all crypto-assets.
"Executing a transaction" covers five distinct activities, including order reception and transmission, order execution, crypto-asset exchanges, discretionary investment decisions, and transfers of crypto-assets to or from accounts.
"Undertaking a transaction" is the broader of the two action terms, encompassing both executing a transaction and merely transmitting an order on behalf of a client.

For the purposes of this Regulation, the following definitions shall apply:

‘transaction’ means the conclusion of an acquisition or disposal of crypto-assets other than the crypto-assets referred to in Article 2(3) and (4) of Regulation (EU) 2023/1114;
‘undertaking a transaction’ means executing a transaction or transmitting an order for crypto-assets on behalf of a client;
‘executing a transaction’ means providing any of the following services or performing any of the following activities that result in a transaction:
1. reception and transmission of orders for crypto-assets on behalf of clients;
2. execution of orders on behalf of clients;
3. exchange of crypto-assets for funds or for other crypto-assets;
4. making an investment decision in accordance with a discretionary mandate given by a client;
5. transfer of crypto-assets to or from accounts.