Consistency and harmonization are in the interests of all VASPs. A universal common language enables beneficiary VASPs to understand and process required originator and beneficiary information submitted by originating VASPs, irrespective of the technical solution.
The Crypto industry started several protocol initiatives to solve the technical aspect of the travel rule. Yet, perhaps the most critical and integral part of the puzzle was collaborating on an industry-standard to transmit structured data between VASPs and/or other affected entities.
In October of 2019, a cross-industry collaborative working group of technical experts from the Chamber of Digital Commerce, Global Digital Finance, and the International Digital Asset Exchange Association developed a new technical standard to create a uniform approach and establish common Travel Rule messaging standards now known as interVASP Messaging Standard IVMS101.
Additionally, The FATF and critical regulators such as FinCEN, MAS, the FCA, and the JFSA were kept informed during the development of IVMS 101. On May 6th, 2020, IVMS 101 was commended for adoption at an InterVASP closing plenary.
This article explains IVMS 101 and why it is the industry standard for transmitting structured Travel Rule data.
IVMS 101 is a widely-adopted universal message standard for communicating required originator and beneficiary information between VASPs. Interoperable Travel Rule messaging protocols use IVMS 101 as their data transmission type.
IVSM 101 data is structured to be sent and received in a meaningful, well-formed, and complete manner. This eases the technical burden towards adoption, as a VASP has only to develop transformations for such entities once.
IVMS101 defines different field types used to specify the required and optional fields that the VASPs share in the context of a Travel Rule transfer. This model/structure considers the FATF requirements and recognizes that many possible scenarios may include different characters encodings and data availability.
An open-sourced industry alliance network made up of technical experts from the Chamber of Digital Commerce, Global Digital Finance, and the International Digital Asset Exchange Association created IVMS 101.
InterVASP has done groundbreaking foundational work with IVMS-101. Still, it is crucial to understand that IVMS 101 is only a standard for the format of the customer record and not a complete solution.
Interoperable Travel Rule messaging protocols use IVMS 101 as their data transmission type. IVMS 101 establishes a universal lexicon directly from the VASP data universe. This reduces the level of ambiguity and decreases the risk of data misinterpretation.
IVMS 101 is live and in production. Various Travel Rule messaging protocols use IVMS 101 as their message standard.
All Travel Rule protocols today use IVMS 101 or have announced their plans to support IVMS 101 in the future.
interVASP: InterVASP Messaging Standard