Singapore Sets the Standard: New Code of Practice for Crypto Enterprises

Introduction to the Code of Practice

The Association of Cryptocurrency Enterprises and Startups, Singapore (ACCESS), has rolled out a game-changing Code of Practice, developed in collaboration with the multinational law firm Linklaters. This initiative caught the attention of the regulatory giant, the Monetary Authority of Singapore (MAS), showcasing a strong commitment to regulatory compliance and innovation in the digital asset sector.

Understanding AML/CFT Guidelines

This Code of Practice is part of a broader effort by ACCESS, dubbed “Standardization of Practice in Crypto Entities.” It hopes to provide a clear roadmap for Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) practices within the cryptocurrency landscape, which could often resemble a wild, untamed jungle.

• Know Your Customer (KYC): The guidelines encourage crypto entities to develop robust KYC processes to ensure they know who they are dealing with, minimizing risks associated with illicit activities.
• Compliance Measures: Detailed measures are in place to enhance compliance, setting a standard that firms can aspire to.
• Industry Trust: By adhering to these guidelines, companies not only bolster their own systems but also enhance the industry’s overall trust factor.

Commentary from the Experts

Peiying Chua, head of Linklaters’ financial regulation practice in Singapore, extolled the initiative, stating that it will fundamentally transform how crypto-asset and blockchain companies operate in Singapore. Not only that, but it enhances Singapore’s reputation on the global stage as a leading hub in blockchain and fintech. In her words, it seems like we might just have a new standard bearer for the industry!

Staying Competitive in the Global Fintech Arena

ACCESS chairman Anson Zeall highlighted that Singapore is not just keeping pace with global developments but is actively enhancing its competitive edge. Recent changes to the goods and services tax (GST) are particularly noteworthy.

1. Reducing Tax Burdens: There is a proposed reduction in the 7% GST on digital payment tokens, which aims to lower operational costs for crypto businesses. Bye bye, unnecessary expenses!
2. Attracting Investment: Lowering costs could lead to a surge in new startups and investment, creating a vibrant ecosystem.

Industry Reactions: A Positive Outlook

Zeall’s insights were echoed by a representative from PwC Hong Kong, who stressed that easing taxation on cryptocurrencies is poised to benefit crypto exchanges and blockchain entrepreneurs greatly. There’s a palpable buzz that these changes might just pave the way for a crypto revolution in the region.