ESMA recommends DTI codes for regulatory reporting of digital assets

ISO-standard digital token identifier (DTI) codes, issued by the DTI Foundation, have been recommended by the European Securities and Markets Authority (ESMA) for use under its Distributed Ledger Technology (DLT) Pilot regulatory regime. The DTI Foundation, a trading division of Etrading Software, is responsible for issuing DTI codes, to bring ISO-based standardization to the digital asset and crypto trading marketplace.

The DTI Foundation has already issued ISO identification codes for over a thousand of the most commonly traded digital assets, with more codes being added each day. ESMA’s DLT Pilot will start applying on 23rd March 2023. The Pilot extends the EU’s MiFIR regime to tokenized financial instruments, helping bring pre- and post-trade transparency and market abuse monitoring to DLT-based securities.

The DTI assists market participants and public authorities to unambiguously identify digital assets and DLTs, using ISO standards. The DTI enables EU regulators to monitor digital asset trades for anti-money laundering and combating terrorist financing requirements and also for monitoring systemic risks arising from the trading of stablecoins and other digital assets. The DTI also assists financial institutions to monitor market data for tokenized securities using globally standardized reference data.

Sassan Danesh, CEO of Etrading Software, said in a statement: “We are proud to operate this critical market infrastructure on behalf of ISO. Our mission is to increase market stability, transparency and efficiency in the digital asset space and we will continue to work with public authorities and industry to provide this vital service to the benefit of all stakeholders.”

Jim Northey, chair of ISO TC68 Financial Services, said in a statement: “The ISO 24165 DTI standard has been designed to work well with existing ISO standards that are utilised for regulatory reporting. The DTI simplifies the addition of digital asset trading and reporting into existing systems.”

READ our recent interview with Etrading’s Sassan Danesh

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