MiFID II

The process of creating a new token on the blockchain, especially NFTs or ERC tokens.

What is it? - Dummies

MiFID II is the rulebook for financial markets in Europe. If financial instruments (shares, bonds, derivatives) were a playing field, MiFID II would be the set of rules saying who can play, how players are signed, and how spectators are protected. It sets out how banks and platforms must behave when they sell you investment products.

What is it? - PRO

MiFID II (Directive 2014/65/EU, Markets in Financial Instruments Directive II) regulates the provision of investment services and activities, trading venues and investor protection in the EU. Annex I, Section C contains the list of financial instruments.

It is the anchor rule for tokenisation: when a token represents a financial instrument (for example, a digitalised share or bond), it falls under MiFID II and securities markets law, and therefore outside the scope of MiCA.

Key points

A directive that must be transposed into the national law of each Member State.
Defines the list of financial instruments (Annex I, Section C).
Reference rule for security tokens.
Complemented by MiFIR (Regulation (EU) 600/2014).

Advantages

Disadvantages

Related Concepts

NFT (Non-Fungible Token)

A unique digital token that represents ownership of a specific asset, such as digital art, music, or collectibles.

Smart contract

Self-executing blockchain programs that automate agreements and processes without intermediaries.

NFT metadata

Additional information that describes the characteristics of an NFT, such as a name, image, description, or unique attributes.

Token

Digital representation of an asset, value or utility within a blockchain.

ERC-721

Standard for non-fungible tokens (NFTs) on Ethereum, used for unique assets such as art, collectibles or digital property.

ERC-1155

Hybrid standard that allows both fungible and non-fungible tokens to be created in the same contract.

Related Services

Create NFT collections

Development of smart contracts

Token development

Issuance of tokens

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