Table of Contents

 

Welcome to the DTI Foundation’s latest Update. Our aim is to share news on DTIF initiatives, statistics, regulatory updates and recent publications impacting digital asset markets.  

 

DTI Foundation initiatives

 

ESMA proposes DTI use for DLT financial instruments under MiFIR Review consultation

 

On 3 October, ESMA published its latest MiFIR Review consultation on RTS 22 and  RTS 24. As part of the review, ESMA proposed ISO 24165 DTI use alongside the ISO 6166 International Securities Identifier Number (ISIN) for the transaction reporting and order book record keeping requirements for DLT financial instruments. This follows ESMA’s mandated use of DTI for non-financial crypto-assets under MiCA and previous recommendation on DTI use within the EU DLT Pilot Regime. ESMA will consider all comments received by 3 January 2025. 

 

The DTI Foundation welcomes ESMA’s proposed amendments to update MiFIR to the application of financial instruments issued, traded, and settled using DLT. We are ready to support further industry implementation of the DTI and encourage industry participants to reach out with any questions.

 

See the DTI Adoption and Integration page for a snapshot of DTI uses.

 

OECD Crypto-Asset Reporting Framework alignment with DTI naming convention

 

On 2 October, the OECD published its Crypto Asset Reporting Framework XML Schema User Guide for Tax Administrators. As part of the schema for reporting transaction information, the user guide states that the crypto-asset name should be reported in line with the Digital Token Identifier, whenever feasible. See the user guide here.

 

US IRS proposes DTI to identify digital assets for crypto-tax form

 

On 11 September, the US Internal Revenue Service published its draft Instructions for Form 1099-DA, requesting comments for the crypto-tax form covering digital asset proceeds from broker transactions. The instructions set the DTI standard for digital asset code and name fields. Our response supports the proposed adoption of the DTI standard and emphasises the open and accessible nature of DTI codes and names, as well as their governance framework. See the full response here.

 

 

Final report from DTI Foundation consultation on cost-recovery principles and assumptions

 

The DTI Foundation has published a final report on its consultation paper seeking industry feedback on the principles underlying its cost recovery model for the DTI service. The consultation aimed to gather feedback on the cost-recovery model for the DTI service, which is crucial for the financial viability and sustainability of the DTI Foundation. See the final report here.

 

DTI Foundation responds to Bank of England’s discussion paper on its approach to innovation in money and payments

 

The DTI Foundation and its Product Advisory Committee responded to the Bank of England’s discussion paper on its approach to innovation in money and payments. Comments referred to how the DTI could support the Bank’s (i) policy outcomes in retail payments; (ii) efforts to foster regulatory coherence; and (iii) proposed programme of experiments; providing further transparency and efficiency for digital assets and payments based on distributed ledger technology. See the full response here.

 

DTI Foundation responds to US Agencies’ proposed Joint Data Standards Rule

 

The DTI Foundation and its Product Advisory Committee responded to the nine US Federal agencies’ Proposed Rule on Joint Data Standards under the Financial Data Transparency Act of 2022. Comments supported the proposed use of ISO standards as common identifiers set out within the rule, in addition to the ISO DTI standard to support the unambiguous identification of digital assets represented on distributed ledger technology. See the full response here.

 

DTI Foundation responds to Abu Dhabi stablecoin framework

 

The DTI Foundation and its Product Advisory Committee responded to the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM)’s consultation paper on its proposed regulatory framework to enable the issuance of fiat-referenced tokens (FRTs). Comments referred to the benefits of leveraging the ISO DTI standard within disclosure information to provide consistency and transparency to regulators and market participants. See the full response here.

 

Stablecoins under MiCA: What it means to be compliant

 

MiCA is a significant step forward for the European Union, providing clear guidelines for the issuance and management of stablecoins. DTI Foundation’s Rowan Varrall explores the key aspects of stablecoins under MiCA, featuring insights from the DTI Foundation on what it means to be compliant.

 

First published on 6 September 2024 in Finextra Long Reads: Stablecoins under MiCA: What it means to be compliant

 

 

DTI Foundation resources

 

Registry API

 

The DTI Registry API provides operational access to the current registry. See the DTI API page for further details.

 

Contact [email protected] if you are interested to subscribing to our premium API, which includes additional features, such as  historical snapshots, incremental files, versioning and other metadata.

 

 

October DTI statistics

 

The total number of DTIs assigned is 2,613. Breakdown of DTIs:

 

  • 2,188 Auxiliary digital tokens
  • 213 Native digital tokens & ledgers
  • 212 Functionally fungible group tokens

 

Events

 

We are excited to announce that the DTI Foundation and the Association of National Numbering Agencies (ANNA) are partnering up for speaking at several crypto and digital asset events in 2024. Don’t miss these opportunities to expand your knowledge and network with industry leaders. See further details in the links below.

 

The Tokenisation Summit 2024, 21 November, London

Digital Assets Week: Singapore, 14-15 November, Singapore

 

Relevant news and publications

 

22 October 2024: FSB published its report on the financial stability implications of tokenisation, and a status report on the G20 Crypto-asset Policy Implementation Roadmap.

 

22 October 2024: EBA published its Decision setting out the procedural aspects related to the significance assessment of asset-referenced tokens (ARTs) and e-money tokens (EMTs) and the transfer of supervisory responsibilities

 

21 October 2024: BIS published its report for the G20 on tokenisation highlights the opportunities, risks and future considerations for central banks.

 

21 October 2024: The US SEC’s Division of Examinations has published its report on priorities for 2025, including a review of crypto-asset practices.

 

18 October 2024: The French Ministry of Economy, Finance, and Industry has issued Ordinance No. 2024-936, adapting provisions to ensure consistency with the Markets in Cryptoassets Regulation.

 

18 October 2024: ESMA published its survey on legal entities identifiers, aiming to gather evidence on the impacts of including alternatives for reporting or record keeping requirements. ESMA will consider feedback received by 12 November 2024. 

 

17 October 2024: Cyprus SEC announced it will no longer accept crypto-asset service provider registrations under national law as it transitions to MiCA regulatory requirements.

 

15 October 2024: ESMA responded to the European Commission proposal to amend the MiCA Regulatory Technical Standards relating to crypto-asset service provider requirements. ESMA acknowledges the legal limitations raised by the Commission but emphasises the importance of the policy objectives behind the initial proposal.

 

10 October 2024: European Commission adopted a delegated regulation setting regulatory technical standards on information to be exchanged between competent authorities.

 

9 October 2024: IOSCO published its final report on crypto-assets investor education.

9 October 2024: EBA published its final Guidelines on the orderly redemption of token holders in case of crisis of the issuer. The Guidelines, which are addressed to competent authorities designated under MiCA, cover issuers of asset-referenced tokens and of e-money tokens.

 

8 October 2024: United Nations Office on Drugs and Crime published its report on Transnational Organized Crime and the Convergence of Cyber-Enabled Fraud, Underground Banking and Technological Innovation in Southeast Asia.

 

7 October 2024: ECB published its working paper on stablecoins, money market funds and monetary policy.

 

4 October 2024: MAS published its consultation on its proposed regulatory approach, regulations, notices and guidelines for Digital Token Service Providers. The consultation closes 4 November 2024.

 

2 October 2024: ESMA published updated Q&As on the status of entities providing crypto-asset services as part of the grandfathering regime.

 

30 September 2024: Bank of England and UK’s FCA announced the opening of the Digital Securities Sandbox. The Sandbox is intended to facilitate the use of developing technology, such as DLT, in the issuance, trading and settlement of securities under a temporarily modified legal and regulatory framework. 

 

26 September 2024: AFM published a warning to investors against crypto pump-and-dump schemes prior to the full implementation of MiCA regulation.

 

26 September 2024: HKMA and SFC published a final report on conclusions from the joint consultation on enhancements to the OTC derivatives reporting regime. As part of the enhancements, the authorities now allow for the DTI as a reportable value to adequately identify crypto derivatives.

 

About the DTI Foundation

 

The Digital Token Identifier (DTI) Foundation is the Registration Authority for the International Organization for Standardization (ISO) 24165 Digital Token Identifier (DTI) standard, an ISO standard that enables the unique identification of all fungible digital assets which use distributed ledger technology for token issuance, storage, exchange, a record of ownership, or transaction validation.

 

The DTI Foundation’s mission is to provide the golden source reference data for the unique identification of digital tokens. As its mandate, the DTI Foundation issues and maintains DTIs on a non-profit basis, to increase transparency in the digital asset space by creating a core reference data set based on open data principles and made available as a public good. 

 

 

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© Digital Token Identifier (DTI) Foundation 2024. All rights reserved. This document is provided for information purposes only and should not be relied upon as legal, financial, or other professional advice. While the information contained herein is taken from sources believed to be reliable, DTI Foundation does not represent or warrant that it is accurate or complete and neither DTI Foundation nor its employees shall have any liability arising from or relating to the use of this publication or its contents.