Singapore cryptocurrency companies can now refer to detailed guidance in their license applications to provide regulated services in the city-state.
On August 13th, the Association of Cryptocurrency Enterprises and Startups, Singapore (ACCESS) presented its new code of conduct to support these companies with their license applications for payment services.
The license was mandatory for any company that wanted to provide certain payment services – including digital payments and digital token trading – since the Singapore Payment Services Act came into force in January this year.
TOCCESS had the support of the Monetary Authority of Singapore (MAS) -the central bank and the regulator of the country- in drawing up the new code of conduct. He also consulted the Singapore Banking Association to solidify his approach and establish clear practical guidelines for successful license applications.
Certain, ACCESS hopes to provide players in the crypto industry with a standardized and detailed guide to best practices against money laundering and terrorist financing.
It took two years to develop the code and it complies with the licensing provisions and guidelines of the Payment Services Act and the travel standard of the Financial Action Task Force. The latter is a global framework where crypto companies must improve their regulatory compliance in line with the expectations of traditional financial institutions.
Sopnendu Mohanty, director of MAS Fintech, said that The Central Bank is “pleased that ACCESS has successfully implemented the Code of Conduct following close industry collaboration and public consultation”. He explained:
“Blockchain and other digital technologies have the potential to transform the payment services landscape […] The challenge for MAS and other financial regulators is to ensure that the risks associated with these new technologies are well managed and that innovation can continue to flourish. “
The new code falls within the scope of the ACCESS initiative “Standardization of Practice in Cryptocurrency Entities”.
Usually, Analysts have responded positively to efforts by Singapore regulators to include crypto companies within the scope of money laundering regulation.. They argue that the immediate transition period in which companies will have to adapt to the new rules will pay off in the long run, providing companies with better reputations and opportunities for future growth.
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