The Association of Cryptocurrency Enterprises and Startups in Singapore, also known as ACCESS, has proposed the development of a code of practice for cryptocurrencies, exchanges and financial institutions that are involved with these assets. The development of this code will be developed in partnership with the multinational law firm known as Linklaters.
This new code of practice would be facilitated by the Monetary Authority of Singapore (MAS) and ACCESS and would be referred to as the standardization of practice and crypto entities (SPICE). The Association of Banks in Singapore (ABS) would also be involved in the development and implementation of these new guidelines.
The reason for developing these guidelines is simple. There is a growing concern that these cryptocurrencies are being used to facilitate money laundering and the financing of terrorists. Because of the anonymity that these digital currencies provide, it is difficult for financial institutions to be able to properly weed out those that are using the digital currency for nefarious purposes.
SPICE will hopefully help to rectify this. By using the current Payment Services Act of 2019, the objective would be to bolster the authority and practices of this law by including those agencies and entities that have the greatest knowledge of how the cryptocurrency market works.
To assist in ensuring of the proper legality of these guidelines, Linklaters has been brought on board to ensure that each measure meets the proper legal standard. In a statement by Peiying Chua, the head of the financial regulation practice at Linklater, he explained that the new initiatives would “enhance the conduct of crypto-asset and blockchain companies in Singapore and further cement Singapore’s reputation as a leading jurisdiction in the blockchain and fintech space.”
The implementation of these new guidelines will also help in making the Singapore exchanges more competitive. Anson Zeall, the chairman of ACCESS, points out that there is a growing need for a regulatory agency to govern digital currency practices. He noted that these new changes will not only help to protect the digital assets and trades but will help to protect the sale of goods and ensure proper tax laws are being followed.
Zeall explained, “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 sieve 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.”
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