Financial market infrastructure provider SIX has launched a new regulatory data service for financial institutions exploring the provision of digital asset services.
The new package, called the Digital Assets Regulatory & Tax Service, will provide institutions with a single information source to help identify their exposure to digital assets and remain compliant with evolving regulations.
Firms will be able to assess whether certain digital instruments, such as tokens and blockchain-based assets, fall under the scope of regulatory and tax requirements. They will be able to monitor, flag and process changes in existing regulatory and tax requirements that relate to their digital assets.
The tool covers a wide variety of new and evolving regulations, including the European regulation on Markets in Crypto-Assets (Mica), the Markets in Financial Instruments Directive (Mifid), the Organisation for Economic Co-operation and Development’s (OECD) Crypto Asset Reporting Framework (CARF), and the Internal Revenue Service’s Form 1099–DA. In addition, the tool includes all traditional financial assets linked to an underlying crypto asset, aligning with Hong Kong’s virtual assets regulatory framework.
Roy Kirby, head of core products at SIX, said: “This tool couldn’t arrive at a more opportune time for financial institutions in Europe and farther afield. It will provide firms with an extremely detailed and reliable snapshot of their digital assets obligations across an incredibly vast array of crypto-based instruments.
“Critically, it will do so at a time when the regulatory landscape for digital assets is shifting at an unprecedented rate. More and more institutions across the globe are rallying to adopt digital assets in a safe and secure fashion, and comprehensive data tools like this will be essential in enabling them to do so.”
The roll-out comes at a time of burgeoning institutional demand for digital assets, with a number of asset servicers and market infrastructures looking to capitalise in the fast-growing space – further buoyed by a string of positive regulatory developments in the sector.
In Europe, the wide-reaching Mica regulation has been in effect since the turn of the year, while US regulators have this year announced a number of measures to encourage participation and growth in the space.