The Digital Token Identifier Foundation (DTIF) has announced plans to deploy its Digital Token Identifier (DTI) for regulatory reporting of digital asset derivatives trades across the G20.
A division of Etrading Software (ETS), DTIF aims to enhance public authorities’ capabilities in identifying global digital asset risks and to promote greater transparency within the crypto derivative trading market. Traditionally, derivatives reporting has been limited to conventional financial instruments.
The DTI serves as an underlier for two derivative identifiers: the Unique Product Identifier (UPI) and the International Securities Identification Number for OTC derivatives (OTC ISIN). The UPI, mandated by the G20 for derivatives reporting, helps regulators monitor systemic risks in OTC derivatives markets, while the more specific OTC ISIN is utilized to identify and investigate market abuse.
Starting on April 29, 2024, crypto-derivatives that fall under the EU’s European Market Infrastructure Regulation (EMIR) will be required to use DTI as an underlier for UPIs and OTC ISINs reported to a trade repository. This will allow EU regulators to extend their oversight of derivative risks to cover digital assets.
The adoption of the ISO 24165 DTI standard highlights the regulatory commitment to establish a globally recognized identification standard for the expanding market of crypto-asset-referenced financial instruments.
Sassan Danesh from DTIF stated, “We are extending the use of the DTI across G20 jurisdictions, including the UK, Australia, and Singapore later in 2024, and Japan in early 2025.”
DTIF operates as a non-profit entity under ETS, which provides regulatory data and develops market infrastructures for the new digital economy.