The rapid expansion of the crypto industry has pushed companies to interact more closely with traditional financial institutions, regulators, and global service providers. As these interactions grow, so does the demand for clear identification, transparent ownership structures, and verifiable compliance. This is where the Legal Entity Identifier (LEI) becomes essential.
LEI as a gateway to financial services
For many crypto companies, obtaining an LEI is not just a formality — it’s a practical tool that unlocks access to banking services, trading platforms, reporting systems, and international counterparties who require a standardized method of verifying corporate identity.
The Legal Entity Identifier (LEI) is a unique 20-character alpha-numeric code based on the ISO 17442 standard developed by the International Organization for Standardization (ISO). It connects to key reference information that enables clear and unique identification of legal entities participating in financial transactions and other official interactions. Each LEI contains information about an entity’s ownership structure. In this way, the LEI answers the questions of ‘who is who’ and ‘who owns whom’. Simply put, the publicly available LEI data pool is a global directory, which greatly enhances transparency in the global marketplace. The universality of this code makes it a standard tool for quickly and reliably confirming that a company truly exists and operates in a legitimate capacity.
International recognition and trust
Unlike domestic registration numbers, the LEI is recognized internationally, which is why it is used by banks, regulators, exchanges, and other financial institutions across different jurisdictions. It was created under the initiative of the G20 and the Financial Stability Board (FSB) as an instrument to increase transparency and reduce financial-sector risks. Thanks to a unified structure, a company’s data can be verified within seconds through the global GLEIF database.
The LEI also serves as a “single source of truth”—it holds up-to-date information that is regularly refreshed, allowing counterparties to be confident that a company is not hiding its ownership structure or modifying key data without trace. This is particularly important for crypto businesses, as many banks and payment providers classify them as high-risk profiles and require maximum transparency before opening accounts or offering services.
How the LEI system supports crypto businesses
The global LEI data pool serves as a unique gateway to standardized information about legal entities across jurisdictions. Each record is validated and regularly updated in accordance with oversight protocols defined by the Regulatory Oversight Committee, ensuring accuracy and credibility of the information.
Advantages of the LEI system
The key advantages of the LEI system include greater transparency and trust between legal entities operating worldwide, streamlined counterparty verification and KYC procedures, a more efficient client onboarding experience, centralized and harmonized business registry data, clear visibility into ownership structures including beneficial owners and parent–subsidiary relationships, and support for meeting current and upcoming regulatory requirements. The Global LEI Index is publicly accessible and free to use, which allows anyone to verify whether a private or public organization is who it claims to be. Such accessibility strengthens trust, reduces counterparty risk, and helps protect investment, trading, and operational decisions.
Through collaboration within the Global LEI System, the Global Legal Entity Identifier Foundation (GLEIF) continues to improve the quality, reliability, and usability of LEI data, especially for automated and digital-first use cases. This ongoing development allows market participants to fully leverage the growing volume of structured information available across the LEI population.
Obtaining an LEI: practical steps and strategic benefits
For businesses operating in finance or cryptocurrency — especially those involved in cross-border transactions — obtaining an LEI is increasingly becoming a practical necessity. Many jurisdictions already require it, and several EU regulatory frameworks rely on the LEI for reporting, verification, and transaction tracking.
Regulatory requirements and global standards
The LEI enhances trust, simplifies compliance, and acts as a critical connector in transaction-reporting systems. Standardized by the International Organization for Standardization (ISO), the LEI ensures global compatibility and reliability, enabling seamless validation of corporate identities across different markets. A notable example is EU Regulation 2023/1113 (TFR), which governs information accompanying transfers of funds and certain crypto-assets. The regulation explicitly calls for the inclusion of an LEI when available. According to Article 4(1)(d), if the payment message format contains a dedicated field, and the payer provides the identifier, the payer’s current LEI must accompany the transfer. Similarly, Article 4(2)(c) requires including the recipient’s LEI under the same conditions. This requirement strengthens AML and CFT checks by enabling fast and reliable identification of the parties involved in a transaction.
How to obtain an LEI
Companies can obtain an LEI code through accredited organizations that operate within the global legal-entity identification system. These institutions function under the supervision of an international regulatory body and are authorized to issue and renew LEIs regardless of the company’s country of registration. The entire process is carried out remotely: it is sufficient to submit basic registration details such as the legal name of the entity, its registration number, address, and the contact information of the authorized representative. In most cases, the information is verified automatically through national business registries, and the registration itself typically takes anywhere from a few minutes to one business day.
The cost of obtaining an LEI generally involves an annual fee that covers data maintenance, updates, and ongoing verification within the international database. Due to the centralized structure of the system, the procedure is the same for companies from any jurisdiction, including those operating in the fields of cryptocurrency or financial services. Once issued, the LEI becomes immediately available and is published in the global directory, allowing any counterparty to verify the company’s legal information. This ensures transparency, strengthens trust, and helps meet regulatory requirements related to identifying parties involved in financial transactions.
Strategic benefits for crypto companies
The growing regulatory focus on transparency, identity verification, and risk management is reshaping how crypto companies interact with the global financial system. In this environment, the LEI has evolved from a niche identifier used by traditional finance into a fundamental element of trust between digital-asset businesses, financial institutions, and supervisory bodies. For companies seeking to operate across borders, build credibility, and maintain stable banking relationships, the LEI is no longer an optional administrative detail — it is a strategic asset.
By providing a universally recognized and verifiable identity, the LEI bridges the gap between innovative crypto-native models and the established compliance expectations of banks, exchanges, and regulators. It helps reduce friction in onboarding, strengthens AML and KYC checks, and ensures that corporate information remains consistent across all jurisdictions where the company operates. This becomes particularly valuable for firms working with high-risk markets or complex organizational structures.
As the regulatory landscape continues to align around global standards — from the EU’s TFR and MiFID II to FATF’s Travel Rule — the role of the LEI will only grow. Crypto companies that adopt it early position themselves for easier access to financial services, smoother integration with institutional partners, and greater confidence from stakeholders. Ultimately, the LEI is not just a compliance requirement but a building block for a more transparent, secure, and interconnected digital-asset economy.
If your company needs assistance with obtaining an LEI number, you are welcome to reach out to the specialists at Manimama Law Firm. Our team will guide you through the registration process, ensure full compliance with regulatory requirements, and help you secure the identifier your business needs to operate confidently on the global market.
Our Contacts
If you want to become our client or partner, feel free to contact us at support@manimama.eu.
Or use our Telegram: @ManimamaBot, and we will respond to your inquiry.
We also invite you to visit our website: https://manimama.eu/.
Join our Telegram to receive news in a convenient way: Manimama Legal Channel.
The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.
