Thu, Nov 21 2024
The Digital Token Identifier Foundation (DTIF) has declared that the G20 will utilize its Digital Token Identifier (DTI) for the purpose of regulatory reporting on trades involving digital asset derivatives.
As a branch of Etrading Software (ETS), DTIF's mission is expanding to better assist international public agencies in identifying hazards associated with digital assets and to increase market transparency for cryptocurrency derivatives. Derivatives reporting has up until now only addressed conventional financial instruments.
Two derivative identifiers—the International Securities Identification Number (OTC ISIN) for OTC derivatives and the Unique Product Identifier (UPI)—have been introduced, with the DTI acting as an underlier to both. Regulators can detect the accumulation of systemic risks in OTC derivatives markets because to the G20-mandated UPI identification for derivatives reporting. A more detailed identifier called the OTC ISIN is employed in the detection and inquiry of market manipulation.
Crypto-derivatives subject to the European Market Infrastructure Regulation (EMIR) of the EU are required to utilize DTI as an underlier to the UPIs and OTC ISINs disclosed to a trading repository as of April 29, 2024. This makes it possible for EU authorities to monitor digital assets in addition to derivative risk.
The ISO 24165 DTI standard's approval demonstrates the regulatory body's dedication to creating a universally accepted identity standard for the expanding market of financial products with cryptoasset references.
"We are expanding the usage of the DTI across the G20 jurisdictions, including in the UK, Australia, and Singapore later in 2024 and Japan in early 2025," said Sassan Danesh, DTIF.
A non-profit arm of ETS, a source of regulatory data, the DTIF constructs market infrastructures for the emerging digital economy.
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