In our recent response to the ESMA Survey on Legal Entity Identifiers (LEIs), Adan highlighted the critical role they play in the financial landscape, notably in global markets such as crypto-assets. By adopting LEIs, businesses can optimize compliance with regulatory requirements across various jurisdictions, where the ability to navigate international regulations and facilitate smooth transactions is essential.

We also pointed out that the European Unique Identifier (EUID) is limited in its applicability, as it is only valid within the confines of the European Union. In contrast, the LEI enjoys global recognition, which enhances their operational efficiency.

Our Key Requests

  • Establishment of a Centralized EU Register for LEIs: We strongly advocate for the creation of a centralized repository that would streamline the verification process for LEIs without disadvantaging companies that utilize other LEIs. This would allow players to reference a single source of truth for entity identification, supporting businesses to navigate the complexities of regulatory compliance.
  • Support for Existing Identifiers: We propose that regulators allow the use of already established identifiers, such as those from the Global Legal Entity Identifier Foundation (GLEIF) or the Digital Token Identifier (DTIF).
  • Implementation of Minimal Information Disclosure Techniques: To protect privacy while ensuring necessary verification, we recommend adopting techniques that allow access to essential data without exposing sensitive information.
  • Targeted Information Campaigns: We emphasize the need for educational initiatives to help businesses understand how to integrate EUIDs and LEIs into their operations effectively, particularly in the crypto-assets sector.