> For the complete documentation index, see [llms.txt](https://www.mica.wtf/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://www.mica.wtf/mica/recitals/2.md).

# Recital 2

MiCA Recital 2 — Regulation (EU) 2023/1114.

|                 |                                                                                 |
| --------------- | ------------------------------------------------------------------------------- |
| **Instrument**  | Regulation (EU) 2023/1114 (MiCA)                                                |
| **Source**      | [EUR-Lex](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32023R1114) |
| **Status**      | In force                                                                        |
| **Review rule** | Legal-text changes require human review                                         |

### (2)

Crypto-assets are one of the main applications of [distributed ledger](https://headlesslaw.com/definitions/mica/distributed-ledger/) technology. Crypto-assets are digital representations of value or of rights that have the potential to bring significant benefits to market participants, including [retail holders](https://headlesslaw.com/definitions/mica/retail-holder/) of crypto-assets. Representations of value include external, non-intrinsic value attributed to a [crypto-asset](https://headlesslaw.com/definitions/mica/crypto-asset/) by the parties concerned or by market participants, meaning the value is subjective and based only on the interest of the purchaser of the crypto-asset. By streamlining capital-raising processes and enhancing competition, offers of crypto-assets could allow for an innovative and inclusive way of financing, including for small and medium-sized enterprises (SMEs). When used as a means of payment, crypto-assets can present opportunities in terms of cheaper, faster and more efficient payments, in particular on a cross-border basis, by limiting the number of intermediaries.


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