The Singapore-based Association of Cryptocurrency Enterprises and Startups (ACCESS) has worked with the international law firm Linklaters to produce a Code of Practice for cryptocurrencies and fintech projects.
The Code is supported by financial authorities in Singapore such as the country’s central bank, Monetary Authority of Singapore (MAS) and the Singapore Association of Banks.
The head of Linklater’s financial regulation practicee in Singapore, Peiying Chua, stated that the project 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 new Code will come under ACCESS’ “Standardization of Practice in Crypto Entities”. This initiative aims to bring some regulatory advice and authority on issues such as money-laundering, financing of terrorism and Know Your Customer (KYC) practices. The new Code will further elaborate on these issues within the crypto and digital asset space. The organisation hopes that it will thus increase regulatory compliance.
The chairman of ACCESS, Anson Zeall, has noted that Singapore is becoming more competitive internationally due to developments and reforms in cryptocurrency regulations. By staying ahead of the curve and creating a regulated and safe space for cryptocurrencies to operate in the nation, Singapore is becoming a hotspot for crypto traders and innovation.
Some of these developments include proposed changes to the country’s goods and services tax (GST) which deal with digital currencies. The use of digital tokens can potentially improve supply chain management and reduce costs for emerging businesses. The government’s plan to reduce the existing 7% GST on the use of crypto assets will therefore positively benefit cryptocurrency exchanges and blockchain entrepreneurs.