The cryptocurrency association of Singapore, known as the Association of Cryptocurrency Enterprises and Startups (ACCESS), is introducing best practices guidelines for the virtual asset industry.
For a long time, the cryptocurrency space has been rife with malpractices and fraudulent activities. Having been an overriding concern for governments of many countries, Singapore is making sure it is not getting outrun when it comes to tightened regulatory scrutiny.
As far as virtual currencies are concerned, Singapore’s ACCESS is leaving no stones unturned to curb money laundering and funding of terrorist activities.
In the latest report published by the Global Legal Post, ACCESS, along with a sound backing from Monetary Authority of Singapore (MAS), is collaborating with a prestigious international law firm, Linklaters, and other major financial institutions to start the ball rolling on this initiative.
Cryptocurrency association of Singapore puts a stop to financial frauds
The newly developed Code of Practice entails best practices or standard operating procedures for the cryptocurrency industry. In a bid to stand up to financial scams and counter terrorism funding activities, ACCESS has put forth set of guidelines, which include the Know Your Customer (KYC) procedures, for the industry to follow.
The new framework will necessitate full compliance with regulatory reforms by cryptocurrency-based organizations and tackle risks concerning malpractices.
Peiying Chua, heading the Linklaters’ financial regulation practice in Singapore, asserts that the démarche marks the country’s first steps towards an institutional development in boosting Singapore’s image in business technology. It will further pave the way for blockchain and fintech related developments in the region, he assures.
Meanwhile, Anson Zeall, chairman of ACCESS, confirms that the cryptocurrency market has become more fierce than before. And to move up in the global competition, the cryptocurrency market in Singapore has to make itself more efficient and coherent.
He firmly believes that initiatives such as these and the introduction of goods and services tax (GST) on digital tokens will go a long way in curtailing operating costs for fledgling organizations in the sector.
Nonetheless, the conjectures about the new initiative are many and varied. Will it genuinely help to curb the cryptocurrency-related frauds or dampen spirits of cryptocurrency firms with more restrictions?