Singapore has come to be known as overtime as one of Asia’s most crypto-friendly countries. It has become the hub for various blockchain crypto startups. In a bid to promote crypto and blockchain innovation the country, the Association of Cryptocurrency Enterprises and startups ACCESS was established in the country. ACCESS was created in mid-2014 and was launched with an aim to facilitate the legitimate use of cryptocurrencies in Singapore and also to help in the development of cryptocurrency driven businesses.
The Association recently developed a draft code of practice which has a primary focus on cryptocurrencies and is looking forward to receiving public feedback by September. The general feedback will serve to strengthen the best crypto practice. The code of practice, which is newly developed, is standardization of practice in crypto entities, SPICE initiative of the Association. The initiative was launched by two of Singapore’s digital asset Association: ACCESS and TEA (token economy Association) back in late November of 2018. It aims at promoting best practices in the country’s crypto industry.
The code of practice is an industry-driven initiative to formulate and promote best practices that will standardize the approach of various aspects in the crypto sector. The action pinpoints several vital elements that it deems relevant to the crypto and blockchain Industry. These elements include know-your-customer-best practices, anti-money laundering, and countering the financing of terrorism.
ACCESS announced its partnership with the monetary authority of Singapore, MAS and the Association of Banks in Singapore, ABS on August 13. The two bodies provided support to each other in drafting the code of practice. ACCESS has stated that it is open and receiving public feedback on the code of practice and will end by September 10.
ACCESS and MAS share an equal voice.
Anson Zeall, the chairman of ACCESS, emphasizes the essence of SPICE and MAS saying “SPICE underscores the strong partnership to support the growing digital asset industry in Singapore. It aims to remove some roadblocks, which have been hindering the growth of the sector. In essence, the code of practice helps banks and Industry players to sift out the bad so that quality licensed blockchain and crypto-asset businesses can grow here in a bigger way and make a stronger imprint on the global stage.”
Underscoring the above note of the chairman Sopnendu Mohanty the MAS Chief Fintech Officer provides a constructive opinion. He reiterates that the authority is very positive about developing a set of guidelines to eventually help both banks and crypto and blockchain startups to standardize their regulatory compliance. Additionally, he explains, “The Challenge for regulators has been to harness the potential benefits of blockchain technology and crypto tokens while ensuring that the risks are contained. This industry collaboration will help to promulgate good practices for fintech players and financial institutions to manage risks such as money laundering and terrorism financing in crypto and blockchain and set the foundation for further technical development and broader Industry adoption of innovative technologies. “
Singapore now joins the growing list of countries that are formulating proposed regulations to govern the crypto industry and cryptocurrency space. Such initiatives as fronted by SPICE and MAS have received wide acclaim by industry enthusiast as safeguarding the fast-growing sector will, in the long run, boost the economy of the country by annually providing revenue injections.
The standardization an regulation of the crypto industry is all the while crucial and countries without such codes are now being rallied to follow suit.as is the case with traditional fiat, cryptocurrencies and the crypto industry can be manipulated by nefarious individuals or even organizations to facilitate illegal and fraudulent activities such as money laundering, and providing terrorism funding.