The <a href="https://www.cryptoknowmics.com/crypto/blockshow-returns-to-celebrate-blockchain-in-asia-with-asia-blockchain-week-in-november-2018/">Association of Cryptocurrency Enterprises and Startups, Singapor</a>e (ACCESS) on Monday<a href="http://www.globallegalpost.com/big-stories/singapore-adds-mas-spice-28919646/"> released</a> a report affirming that they had developed an industry code of practice targeted at cryptocurrency firms operating in Singapore. This was done in facilitation from the Monetary Authority of Singapore (<a href="https://www.mas.gov.sg">MAS</a>).
The newly-launched code is set to strengthen the ‘standardization of practice in crypto entities’ (SPICE) initiative, which aims to formulate and stimulate industry best practices and complement Singapore’s Payment Services Act 2019 (PS Act).

The code of practice was developed with accompanying guidance from multinational law firm<a href="https://www.linklaters.com/en/locations/singapore"> Linklaters</a> in consultation with the Association of Banks in Singapore (ABS). It contains practices to cover exchange operators, payment and remittance services firms, cryptocurrency custodians, and blockchain network infrastructure for service providers.

The code aims to set out standards of ethical practice regarding anti-money laundering and to counter the financing of terrorism (AML/CFT) measures for crypto firms to observe voluntarily. 

Anson Zeall, the chairman of ACCESS, stated:
<blockquote>‘’We are heartened to witness the industry moving in the right direction with key developments that support the growth momentum. For example, the<a href="https://theusbreakingnews.com/singapore-wants-to-drop-vat-for-transacting-in-cryptocurrencies/"> proposed</a> goods and services tax (GST) revamp in relation to digital payment tokens will eliminate many existing business hurdles and costs.’’</blockquote>
Anson further hailed the code as a significant step forward in strengthening Singapore’s competitiveness as a global fintech hub.
<h4>A comprehensive partnership</h4>
ACCESS said it is working with industry front-runners to provide practical guidance around best practices for various cryptocurrency exchanges based in Singapore. The group involved in furthering the SPICE initiative is co-led by cryptocurrency exchange Luno and includes Paxos, Quoine, and Xfers. 

The entire SPICE project is being overseen and facilitated by MAS, which welcomes the industry’s collaborative effort to nurture guidance that helps banks and cryptocurrency/blockchain startups strengthen regulatory compliance. 

Hailing the industry collaboration to strengthen regulatory compliance for the digital asset industry in Singapore, Sopnendu Mohanty, the chief fintech officer of MAS stated that the effort would help to promulgate good practices for financial institutions to manage<a href="https://www.bellingcat.com/news/2019/08/09/the-evolution-of-bitcoin-in-terrorist-financing/"> risks</a> such as money laundering and financing of terrorism in crypto and blockchain technology.  

He further said that the code of practice would set the foundation for further technical development and broader industry adoption of innovative technologies.
<h4>Details of the code </h4>
The code of practice mainly directs cryptocurrency companies on how to assess the<a href="https://www.planetcompliance.com/anti-money-laundering-and-combating-the-financing-of-terrorism/"> AML/CFT</a> risks arising from their activities and clients. This includes consideration of customer risk, geographical risk, and business risk.

Assessing customer risk should entail looking into the complexity of a company’s ownership structure to determine if they are a cash-intensive business and whether they will be making high volumes of transactions and regular transactions of high value. 

Assessing geographical risk will necessitate evaluating factors such as where a company’s clientele is located, as well as the origin and destination of transactions.

Mitigating business risk involves determining whether or not a business is spread across numerous jurisdictions, the nature and complexity of a company’s products or services, and if the business has a substantial reliance on third parties to distribute its products.

Depending on the calculated risk, crypto firms should apply the suitable level of customer due diligence measures.

ACCESS &amp; Lawmaker Develop a Code of Practice for Singapore Cryptocurrency

Am Wayne, a Blockchain enthusiast and expert in crypto trading. Currently, I cover trendy issues on digital currencies.

ACCESS & Lawmaker Develop a Code of Practice for Singapore Cryptocurrency

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