A cryptoasset is a digitally recorded representation of value or contractual rights that is secured using cryptography. In UK legislation, the definition also says it can be transferred, stored or traded electronically and uses technology that supports the recording or storage of data, which may include distributed ledger technology.
“Cryptoasset” is a useful umbrella term. It is wider than the everyday word “cryptocurrency”, because it can cover different kinds of digitally recorded assets and rights. It does not tell you whether something is a form of money, a safe product, a legal right or a good investment.
A UK definition in plain English
The Financial Conduct Authority describes cryptoassets as cryptographically secured digital representations of value or contractual rights that use some type of distributed ledger technology and can be transferred, stored or traded electronically. The wording comes close to the statutory definition in the Financial Services and Markets Act 2023.
- Digital representation: the item is represented electronically rather than by a physical coin or note.
- Value or contractual rights: the term can describe more than one kind of thing.
- Cryptographically secured: cryptographic methods are part of how records or permissions are handled.
- Electronically transferable, storable or tradable: the definition concerns a digital record that can move or be held electronically.
Cryptoasset is not the same as cryptocurrency
People often use the two words interchangeably. In UK-facing writing, “cryptoasset” is usually the clearer broad term. The FCA uses it for several categories, while it says Bitcoin-like exchange tokens are often called cryptocurrencies, cryptocoins or payment tokens.
That does not mean every cryptoasset works like a payment system. Nor does the label settle its regulatory treatment. The FCA’s categories are an explanation of how it approaches the subject, not a shortcut for deciding what any individual asset represents.
Terms that need their own explanations
A cryptoasset may use a distributed ledger such as a blockchain, but the terms are not interchangeable. A blockchain is a way of organising records; a cryptoasset is a digitally recorded item or right. “Token”, “coin”, “stablecoin” and “NFT” also describe different ideas and should not be treated as synonyms.
For a basic introduction to the vocabulary, see our crypto glossary. For a technical distinction between two commonly confused labels, read Crypto explained.
What the word does not prove
Calling something a cryptoasset does not establish its value, authenticity, ownership, safety, legal effect or suitability for anyone. Those questions depend on facts outside the label, including the relevant system, terms and claims being made.
Sources and scope
Read the Financial Services and Markets Act 2023 definition and the FCA’s cryptoassets overview. This page explains terminology only. It is not financial, tax or legal advice. Source check: 15 September 2026. To flag an error, contact The Coin Expert with the page and a source.
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