ADAN Responds to ESMA’s Consultation on Legal Entity Identifiers (LEIs)
In our recent response to ESMA’s consultation on Legal Entity Identifiers (LEIs), Adan highlighted the crucial role they play in the financial landscape, particularly in global markets such as crypto-assets. By adopting LEIs, companies can optimize their compliance with regulatory requirements across various jurisdictions, where the ability to navigate international regulations and facilitate seamless transactions is essential.
We also noted that the European Unified ID (EUID) has limited applicability, as it is valid only within the European Union. In contrast, the LEI is recognized worldwide, which enhances its operational effectiveness.
Our Main Requests
- Establishment of a Centralized EU Registry for LEIs: We strongly advocate for the creation of a centralized repository that would simplify the LEI verification process without disadvantaging companies using other LEIs. This would allow stakeholders to refer to a single source of truth for entity identification, thereby helping companies navigate the complexities of regulatory compliance.
- Support for Existing Identifiers: We propose that regulators authorize the use of established identifiers, such as those from the Global Legal Entity Identifier Foundation (GLEIF) or the Digital Token Identifier (DTIF).
- Implementation of Data Minimization Techniques: To protect privacy while ensuring the necessary verification, we recommend adopting techniques that allow access to essential data without exposing sensitive information.
- Targeted Awareness Campaigns: We emphasize the need for educational initiatives to help businesses understand how to effectively integrate EUIDs and LEIs into their operations, particularly in the crypto-asset sector.
