SIX, the global financial data and market infrastructure provider, has launched its Digital Assets Regulatory & Tax Service – a data package providing financial institutions with “a single information source to help identify their exposure to digital assets and remain compliant with evolving regulations.”
It comes amid burgeoning demand from firms “to gain a clearer picture of their digital asset obligations.”
The Digital Assets Regulatory & Tax Service is “a comprehensive digital assets data package available to financial institutions globally.”
It empowers firms to assess whether more than “80,000 crypto-related instruments – such as tokens and blockchain-based assets – fall under scope of regulatory and tax requirements.”
This means firms are able to monitor, flag, and “process changes in existing regulatory and tax requirements that relate to their digital assets.”
The file is updated daily, therefore spanning a “universe of instruments and ensuring clients remain abreast of regulatory changes as they happen.”
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 (IRS) Form 1099–DA.”
In addition, the tool includes all traditional financial assets linked to an underlying crypto asset, enabling “alignment with Hong Kong’s virtual assets regulatory framework.”
It draws from an extensive network of data sources, “such as ESMA Register, the Digital Token Identifiers Foundation, and CCData, guaranteeing users trustworthy, complete and high-quality data.”
Users will engage with the new service via SIX Flex, the platform that allows financial institutions to customize “how they access and manage a wide range of market, reference, regulatory, and ESG data.”
This will ensure firms can “integrate the digital asset data into their own systems.”
Roy Kirby, Head of Core Products at SIX, said:
“This tool … 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.”