Digital identifiers that help the crypto market become mainstream

File Photo: Taken on August 6, 2021, this figure shows the cryptocurrency Bitcoin and Binance representations.Reuters / Daddle Bitch / Illustration / File Photo

August 25, 2021

Hugh Jones

London (Reuters) -Tags for identifying Bitcoin, Ethereum and other crypto assets show how the fast-growing, unregulated market is adopting mainstream investment features As a symptom, it will be released in September.

The ability to monitor cryptocurrencies is regulators as the baluning market, which reached a record $ 2 trillion market capitalization in April, experienced intense volatility and central bank warnings that investors could lose their shirts. Is a big concern for us.

Individual stocks and derivatives are already assigned unique identification numbers so that regulators and market participants can identify, track and quantify risks from transactions.

The new digital token identifier or DTI will be registered with the DTI Foundation, a non-profit division of Etrading Software, a fintech company that provides market infrastructure.

Sassan Danesh, managing partner of Etrading Software, told Reuters that as the crypto asset sector grows, regulators and markets will need identifiers to track it better.

DTI will build a bridge between traditional securities and the new tokenized world, using the standards of the Global International Organization for Standardization (ISO), which will be finalized by the end of September.

At that point, Danesh said the DTI registry officially issues identifiers for the 100 most important crypto assets and tokens, including Bitcoin, Ethereum, Dogecoin and Ripple, representing more than 80% of the current crypto market. increase.

The identifier will also make it easier to compare which exchanges offer the best prices for a particular crypto asset, he added.

ISO-based identifiers have already been used to report securities and derivative transactions to regulators to detect market abuse and risk accumulation, and Danesh said DTI would lead to similar requirements for crypto trading. I’m expecting it.

“We absolutely see that reporting digital assets has a regulatory obligation, which is driven by the size of the digital market, which cannot be ignored by regulators today,” Danesh said. Says.

Given the time required for DTI to be marketed, he added that the end of 2023 would probably be the earliest practical date to introduce mandatory reporting.

Large investors’ IT systems are already referencing ISO-based identifiers, and adding DTI does not result in major readjustments, making it easier to add digital assets.

“When financial institutions are trying to add digital assets to the range of asset classes they want to trade, compliance officials don’t want to come up with a whole new policy,” Danesh said.

“There, DTI meets and is part of the same ISO standard family.”

(Report by Hugh Jones, edited by Carmel Crimins)

Digital identifiers that help the crypto market become mainstream

Source link Digital identifiers that help the crypto market become mainstream

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