qualifying cryptoasset

38(as defined in paragraph 26F (Qualifying cryptoasset) of Schedule 1 to the Financial Promotion Order):(1) Any cryptoasset (other than a cryptoasset falling in (2)) which is:

1. (a) fungible; and
2. (b) transferable.

(2) A cryptoasset does not fall within (1) if it is:

1. (a) a controlled investment falling within any of paragraphs 12 to 26E or, so far as relevant to any such investment, paragraph 27 of Schedule 1 to the Financial Promotion Order;
2. (b) electronic money (as defined in regulation 2(1) (Interpretation) of the Electronic Money Regulations);
3. (c) fiat currency;
4. (d) fiat currency issued in digital form; or
5. (e) a cryptoasset that:
   1. (i) cannot be transferred or sold in exchange for money or other cryptoassets, except by way of redemption with the issuer; and
   2. (ii) can only be used in a limited way and meets one of the following conditions:
      1. (1) it allows the holder to acquire goods or services only from the issuer;
      2. (2) it is issued by a professional issuer and allows the holder to acquire goods or services only within a limited network of service providers which have direct commercial agreements with the issuer; or
      3. (3) it may be used only to acquire a very limited range of goods or services.

(3) For the purposes of this definition, a cryptoasset is any cryptographically secured digital representation of value or contractual rights that:

1. (a) can be transferred, stored or traded electronically; and
2. (b) uses technology supporting the recording or storage of data (which may include distributed ledger technology).