Cryptocurrencies are great in that they aren’t tied to any government’s central bank. Their ownership and operation are effectively placed in the power of the people who choose to associate with cryptocurrencies. For example, Bitcoin transactions are verified by people who choose to mine them, who are, in turn, provided with small portions of the cryptocurrency in exchange for the computing power, electricity, and Internet access they burn up in the process.
Arguably the largest downfall of the current world of cryptocurrency is that they are virtually unregulated. Even though, after gaining popularity in the past few years, governments around the world have tried to lobby regulations at the field of cryptocurrency, most countries’ governments, including that of the United States, a world leader in all things related to finance, have failed to lay down virtually any laws related to Bitcoin and company.
Fortunately, one international cryptocurrency organization, ACCESS, short for the Association of Cryptocurrency Enterprises and Startups, Singapore, has recently come out with an official Code of Practice with Linklaters, an international law firm.
A report from the Global Legal Post published earlier today, on Monday, Aug. 19, 2019, indicated that the Association of Cryptocurrency Enterprises and Startups had the full backing and support of Singapore’s Monetary Authority of Singapore, the single regulatory authority of all things related to finance in the country that also serves as Singapore’s central bank.
In order to help put ACCESS’ Code of Practice into action as soon as possible, the Monetary Authority of Singapore has formally reached out to the Association of Banks in Singapore to launch the initiative into practice.
The aforementioned Code of Practice falls under the umbrella of ACCESS’ Standardization of Practice in Crypto Entities, a number of guidelines that include sub-guidelines for Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) for all business entities within the world of digital assets. The Standardization of Practice in Crypto Entities legislation also includes best practices for Know Your Customer within the world of digital assets.
The Code of Practice is designed to beef up compliance with regulations related to AML/CFT concerns.
Thanks to the hard work that has recently been put in by the Monetary Authority of Singapore and the Association of Banks in Singapore, the Southeast Asian country is further developing itself as a world leader in the realm of cryptocurrencies and digital assets.
