Singapore Crypto Sector Consults on AML/CFT Code of Practice

The code was facilitated by MAS and developed in consultation with ABS by ACCESS, the Association of Cryptocurrency Enterprises and Start-ups, Singapore.

ACCESS (the Association of Cryptocurrency Enterprises and Start-ups, Singapore) has developed a new code of practice for Singapore’s digital asset sector, and is seeking public feedback until 10 September.

Facilitated by the MAS (Monetary Authority of Singapore) and developed in consultation with the ABS (Association of Banks in Singapore), the code of practice seeks to raise the bar for regulatory compliance standards among crypto asset and blockchain companies and reduces existing business hurdles to allow better quality companies in the sector to develop.

“The Code of Practice helps banks and industry players to sieve out the ‘bad’, so that quality licensed blockchain and crypto-asset businesses can grow here in a bigger way and make a stronger imprint on the global stage,” said ACCESS chairman Anson Zeall.

The code of practice was developed under the SPICE (Standardisation of Practice In Crypto Entities) initiative, which seeks to promote good practices to strengthen regulatory compliance for the digital asset industry, underscoring the importance of partnership, while striking a balance to promote financial inclusion.

It standardises the approach to tackling AML/CFT in the crypto asset sector, a key consideration for licensing and regulation of digital payment services providers under Singapore’s new Payment Services Act.

The code covers best practices around KYC controls, transaction monitoring, risk assessments, governance, record keeping, reporting and outsourcing, among other considerations.

“MAS welcomes the ground-up collaborative effort by the industry to develop a set of guidance to help banks and crypto blockchain startups strengthen regulatory compliance,” said the regulator’s chief fintech officer, Sopnendu Mohanty.

“This industry collaboration will help to promulgate good practices for FinTech players and financial institutions to manage risks … and set the foundation for further technical development and broader industry adoption of innovative technologies.”

To further the SPICE initiative, ACCESS is working with industry leaders to provide practical guidance around best practices for cryptocurrency exchanges based in Singapore.

A copy of the code of conduct is available here, and its related guide here. Feedback can be sent to [email protected].