The Association of National Numbering Agencies (ANNA), a notable global organization responsible for monitoring the works of institutions that issue International Securities Identification Numbers (ISINs), announced the establishment of a new task force that seeks to examine the naming standards for cryptocurrencies and other digital assets.
As per the announcement, ANNA will assess all types of tokens to ensure that they are appropriately labeled before they circulate in financial markets. Thus, the organization would outline its recommendations to emphasize the importance of having global standards when it comes to assigning ISIN to digital assets. As highlighted, the scope of the new initiative includes asset tokens, utility tokens, payment tokens, and hybrid tokens.
ISIN is a unique code that was first used in 1981. It identifies securities, which include entitlements, derivatives, equities, debt instruments, interest rates, currencies, commodities, and indices. It has many benefits and is particularly useful in clearing and settlement procedures.
Often, ISINs are confused with a ticker symbol. However, unlike the latter which identifies the stocks on a particular exchange and varies depending on what securities are listed, an ISIN code is given to a specific security and is universally recognized. An ISIN code is made up of 12 characters, and it follows a consistent format so that institutional investors or holdings can be monitored consistently across financial markets worldwide.
ANNA’s executive director, Uwe Meyer, said that having a global standard for identifying and labeling digital assets would enhance the credibility and transparency of the token market. Notably, over 200 jurisdictions worldwide rely on ISINs to enable international trading.