The Association of Cryptocurrency Startups and Enterprises, Singapore (ACCESS) is looking to facilitate public discussion of their newly formulated code of practices. As per a report from Strait Times, the code aims to tackle a variety of issues like money laundering, financing global terrorism, and many other crucial issues that need to be addressed. Compliance with the code is mandatory to get a license to operate a cryptocurrency business.
Welcoming Cryptocurrency with Open Arms
Singapore has fully embraced the potential of cryptocurrency and distributed ledger technology as they find new ways to reap the benefits while minimizing the risks.
The code of practice will be governed by the Monetary Authority of Singapore (MAS) and was developed in tandem with the largest banks in the country. Synergy between the banking sector and new-age financial products like cryptocurrencies is frankly unheard of, but a welcome move.
To boil it down, the core premise of such a code is to help crypto businesses sieve out the bad actors in the space. While there is still a major grey area and not every aspect of the industry can be regulated, this is a good start to ensure blatant misuse of cryptocurrency does not go unpunished.
Regulators are fully aware of the merits and demerits of cryptocurrencies and token. Despite this, they have gone beyond the actions of any other major government and decided to bring the entire industry under regulation.
MAS Chief of FinTech, Sopnendu Mohanty, believes that a bottom-up approach that involves cooperation amongst the entire financial sector is the best way to eliminate a bulk of criminal activity and harness the potential of blockchain.
Authorities across the globe can take a page out of Singapore’s notebook and embrace cryptocurrencies rather than stifling innovation.
The foresight shown by the Monetary Authority of Singapore will help them become a new hub for cryptocurrencies amid dwindling interest in Zug Valley.
The U.S. has shown its ability to abstain from rash decisions, as have China and Russia; the only major country still on the complete offensive versus cryptocurrency in India, and even this hasn’t been etched into legislation yet.