In June 2019, the Financial Action Task Force (FATF) adopted changes to its Recommendations bringing Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs) into scope of Anti-Money Laundering (AML) and Combatting Terrorist Financing (CTF) regulations. Since then, countries have been implementing the FATF’s Crypto Recommendations into national laws and regulations.
At the time, Malcolm Wright of GDF and Siân Jones, Senior Partner of XReg Consulting saw the need for messaging standards in this new area, particularly relating to information that has to be shared between VASPs with each crypto transaction (a FATF requirement known as the ‘Travel Rule’). To tackle this, a cross-industry, cross-sectoral joint working group of 130 technical experts came together in December 2019 and worked intensively for 4 months to develop a universal common language for communication of required originator and beneficiary information between VASPs.
The Joint Working Group for interVASP Standards was led by three industry associations, GDF (then Global Digital Finance), the Chamber of Digital Commerce, and the International Digital Asset Exchange Association (IDAXA). The work of the group was co-led and supported by members of XReg Consulting, with weekly calls of technical experts facilitated by Siân Jones, and Neil Samtani, VASPnet’s Chief Executive Officer, serving as technical editor.
A new technical standard, IVMS 101, was developed and released by the group in May 2020. This standard provides for a common data standard to transmit and receive personal originator and beneficiary information between VASPs and is used by all leading Travel Rule solution providers.
A new interVASP Standards Working Group has been formed as an open Independent Working Group Node, under the auspices of GDF’s Open Standards Council, with Andrew Davidson of OpenVASP and Neil Samtani of VASPnet co-chairing the standards development. Members of the crypto community with relevant technical expertise will be able to join the working group without being members of GDF. Regulators will be invited to observe the working group.
The initial aim of the group is to maintain and further develop the existing IVMS 101 standard. Following the original release of the data model and its subsequent broad adoption, feedback points from the community were received and some minor updates are now required. Further standards are then planned to create greater consistency and integrity within the crypto ecosystem.
For further information on joining the interVASP Standards Working Group, please see www.intervasp.org.
GBBC Digital Finance
Emma Joyce, firstname.lastname@example.org
Alexandra Walters, email@example.com
GBBC Digital Finance (GDF) is a global non-profit members association advocating and accelerating the adoption of best practices for digital assets globally.
GDF drives the creation of global best practice and sound governance policies, enabling the cryptoasset market to thrive through establishing codes of conduct for the sector.
GDF recently merged with GBBC (Global Blockchain Blockchain Council). The merger sees the two organizations join their respective resources, assets, and membership, becoming the world’s largest industry association for the blockchain technology and digital assets ecosystem.
OpenVASP is a non-profit members association that develops open and permissionless standards and tools for VASPs. The association's core standard is TRP, the Travel Rule Protocol, a fully decentralised solution for the FATF Travel Rule. OpenVASP has also published a free IVMS 101 validator which can be used to ensure interoperability of IVMS 101 implementations. OpenVASP was launched in November 2019.
VASPnet is the world’s assured source of regulatory reference data on virtual asset service providers (VASPs). Our VASPdata platform gives public and private sector entities the information they need to make well-informed, risk-based decisions on the VASPs they do business with. VASPnet is an XReg company, an international public policy and regulatory affairs consultancy specialising in crypto-assets. Visit www.vaspnet.com to find out more.