EU Updates Crypto-Asset Rules With New Digital Token Identifier Standard

New Identification Framework Takes Effect December 2025

The European Union has adopted the ISO 24165 Digital Token Identifier (DTI) standard as the primary identification system for crypto-assets under its Markets in Crypto-Assets (MiCA) regulation, marking a significant step toward standardized digital asset classification across all 27 member states. Commission Delegated Regulation (EU) 2025/421, published December 16, 2024, takes effect December 23, 2025, establishing machine-readable data requirements for crypto-asset white papers.

According to ESMA’s official guidance, the DTI standard will enable consistent identification of crypto-assets in the central register mandated under Article 109 of MiCA. The regulation requires crypto-asset issuers to use either the ISO 24165 DTI or an ESMA-approved alternative identifier meeting specific characteristics, including uniqueness, neutrality, reliability, and open-source accessibility.

The DTI consists of nine alphanumeric characters where the first eight are randomly generated, excluding vowels and the letter ‘Y,’ with the final character serving as a check digit. This structure supports regulators and market participants by providing greater transparency and risk mitigation across fungible digital assets using distributed ledger technology. Businesses managing treasury operations through platforms facilitating crypto for business transactions will need to verify DTI compliance for EU-regulated assets.

Technical Standards and Implementation Requirements

The new regulation supplements MiCA by specifying data necessary for classifying crypto-asset white papers and ensuring machine readability. Issuers must provide data in a common format according to the ISO 20022 standard, though exemptions exist when data is already included in white papers compliant with Articles 6, 19, or 51 of MiCA.

How DTIs move through the EU digital asset ecosystem — from issuer submission to ESMA validation, platform integration, and market oversight.

The regulation introduces the Functionally Fungible Group Digital Token Identifier (FFG DTI) for identifying crypto-asset white papers consistently in ESMA’s central register. This allows users to retrieve the main characteristics of crypto-assets, including technology-specific features and group tokens issued across multiple blockchains pertaining to the same white paper.

National Competent Authorities must submit data to ESMA in the same format as white papers, minimizing costs through automated data derivation. The system enables authorities to verify that MiCA requirements are applied consistently across jurisdictions while facilitating public accessibility to classified white papers. Those managing assets through comprehensive digital wallet solutions should monitor whether tokens comply with new identification standards.

Commission Delegated Regulation (EU) 2025/416, also effective from publication, establishes content and format requirements for order book records maintained by crypto-asset service providers operating trading platforms. This parallel regulation requires individual transaction identification codes for each executed order, creating comprehensive audit trails for regulators.

Broader Regulatory Context and Implications

The DTI adoption extends beyond MiCA compliance. As of April 29, 2024, crypto-derivatives falling under the European Market Infrastructure Regulation (EMIR) must use DTI as an underlier to Unique Product Identifiers (UPI) and International Securities Identification Numbers for OTC derivatives. According to Markets Media reporting, this enables EU regulators to extend derivative risk monitoring to digital assets for the first time.

The Digital Token Identifier Foundation (DTIF), a non-profit division of Etrading Software, maintains and issues DTIs globally. DTIF has announced plans to extend DTI usage across G20 jurisdictions, including the UK, Australia, and Singapore, by late 2024, with Japan following in 2025. This international coordination aims to establish a globally recognized identification standard for the growing market of crypto-asset-referenced financial instruments.

The adoption underscores regulatory commitment to infrastructure supporting cross-border transparency. Until now, derivatives reporting has focused solely on traditional financial instruments. The DTI integration with UPI and OTC ISIN identifiers allows authorities to identify systemic risk buildup in OTC derivatives markets and detect market abuse involving digital assets.

For crypto-asset service providers, the December 23, 2025, implementation deadline requires immediate action. Firms must update systems to support DTI-based identification, integrate with ESMA’s central register, and ensure white papers contain machine-readable data meeting new technical standards. Platforms offering services to swap crypto between different assets must verify that listed tokens include proper DTI identification for EU compliance.

The regulation’s machine-readability requirements represent a significant operational burden for smaller issuers lacking technical resources. White papers must be drawn up in XHTML format using the Inline XBRL 1.1 specifications of eXtensible Business Reporting Language. ESMA may publish machine-readable and downloadable XBRL taxonomy files to support compliance, though reliance on complex technical formats creates barriers for projects with limited development capabilities.

Critics note that standardization efforts, while improving transparency, may inadvertently favor established issuers with compliance infrastructure over innovative projects. The costs of meeting machine-readable format requirements and maintaining DTI registration could exclude smaller teams from EU markets, potentially reducing competition and innovation within the regulatory perimeter.

However, supporters argue that consistent identification standards are essential for mature financial markets. The absence of standardized identifiers has hampered regulatory oversight, cross-platform risk assessment, and investor protection. By implementing the DTI framework, the EU positions itself as a leader in digital asset regulation, potentially setting standards that other jurisdictions adopt.

The implementation coincides with broader MiCA deadlines. While stablecoin provisions took effect June 30, 2024, comprehensive rules for Crypto Asset Service Providers come into force December 30, 2024. The DTI requirement adds another compliance layer that firms must integrate into existing MiCA adaptation efforts. Those tracking crypto market prices across jurisdictions should note that EU-listed tokens may trade at premiums or discounts based on compliance status.

Looking Forward

The DTI standard implementation represents a foundational shift toward regulated digital asset markets in Europe. By establishing machine-readable, standardized identification systems, the EU creates infrastructure supporting transparent, auditable crypto-asset trading comparable to traditional securities markets.

Success depends on practical implementation and international adoption. If other major jurisdictions embrace DTI standards, it could become the global identification system for digital assets. Conversely, if competing identification frameworks emerge in the US, UK, or Asia, fragmentation may undermine the efficiency gains standardization promises.

For market participants, the immediate priority involves ensuring compliance by December 23, 2025. Issuers must obtain DTIs for their tokens, integrate identifiers into white papers, and verify machine-readable format compatibility. Trading platforms must update systems to recognize and validate DTI-identified assets, while ensuring order book records meet new technical specifications.

The regulation marks another step in the EU’s comprehensive approach to digital asset oversight. While implementation challenges remain, the DTI framework provides clarity that market participants have requested for years. Whether this regulatory infrastructure supports innovation or stifles it will become apparent as firms adapt to the new requirements throughout 2025 and beyond.