Identification of Digital Tokens for Monitoring Crypto-Derivative Risk across G20 Countries

The Digital Token Identifier Foundation (DTIF) has declared that its Digital Token Identifier (DTI) will be utilized for the regulatory reporting of digital asset derivative trades across the G20.

A branch of Etrading Software (ETS), DTIF’s role is expanding to offer public authorities increased assistance in recognizing global digital asset risks and promoting more transparency in the crypto derivative trading sector. Previously, derivatives reporting had focused only on conventional financial instruments.

The DTI has been integrated as a foundation for two derivative identifiers: the Unique Product Identifier (UPI) and the International Securities Identification Number for OTC derivatives (OTC ISIN). The UPI is a G20-required identifier for derivatives reporting, allowing regulators to identify systemic risks accumulation in OTC derivatives markets. The OTC ISIN, a more detailed identifier, is used for identifying and investigating market manipulation.

Starting from 29 April 2024, crypto-derivatives falling under the EU’s European Market Infrastructure Regulation (EMIR) must incorporate DTI as a foundation for the UPIs and OTC ISINs reported to a trade repository. This facilitates the extension of derivative risk monitoring to digital assets by EU regulators.

The implementation of the ISO 24165 DTI standard emphasizes the regulatory commitment towards establishing a globally acknowledged identification standard for the growing crypto-asset-referenced financial instruments market.

Sassan Danesh, from DTIF, stated: “We are expanding the use of the DTI across the G20 jurisdictions, including in the UK, Australia, and Singapore later in 2024 and Japan in early 2025.”

DTIF is a non-profit branch of ETS – a regulatory data provider constructing market infrastructures for the modern digital economy.

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