Facilitated by the Monetary Authority of Singapore (MAS), the Association of Cryptocurrency Enterprises and Start-ups, Singapore (ACCESS) has developed a ‘Code of Practice’ under its standardisation of practice in crypto entities (SPICE) initiative, as well as an accompanying guide in partnership with Linklaters and in consultation with the Association of Banks in Singapore (ABS).

Best practice

The Code of Practice addresses the concern regarding the use of cryptocurrencies to facilitate money laundering and terrorism-financing activities due to the anonymity associated with the products and promotes best practices to strengthen regulatory compliance for digital asset companies. Complementing Singapore’s Payment Services Act 2019 (PS Act), SPICE provides detailed anti-money laundering and countering the financing of terrorism (AML/CFT) guidelines and practical guidance which crypto-asset and blockchain companies should comply with, including know-your-customer (KYC) best practices, as well as other key issues relevant to players in the digital asset industry.

Legal driver

Peiying Chua, who leads the Linklaters financial regulation practice in Singapore , said “We are honoured to be appointed as the law firm driving this inaugural industry-changing initiative from a legal and strategic perspective. This initiative will 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.” Anson Zeall, chairman at ACCESS, added “We are heartened to witness the industry moving in the right direction with key developments that support the growth momentum. For example, the proposed goods and services tax (GST) revamp in relation to digital payment tokens will eliminate many existing business hurdles and costs - a significant step forward in strengthening Singapore’s competitiveness as a global fintech hub.”