Linklaters has advised the Association of Cryptocurrency Enterprises and Start-ups, Singapore (ACCESS) on the official launch of a Code of Practice – aiming to provide regulatory guidance to digital asset players, and facilitate their payment service provider licence applications under Singapore’s Payment Services Act, and to strengthen regulatory compliance for the digital asset industry.
Facilitated by the Monetary Authority of Singapore (MAS) and developed in consultation with the Association of Banks in Singapore, the Code of Practice is a collaborative effort by the industry to provide practical regulatory guidance to cover new types of digital payments activities. As a key industry-driven initiative, the Code of Practice standardises the approach to tackling anti-money laundering (AML) and counter financing of terrorism (CFT), know-your-customer best practices, as well as other key issues relevant to crypto-asset and blockchain companies – all of which are key considerations for the licensing and regulation of digital payment service providers in Singapore.
The Linklaters team was led by financial regulation partner Peiying Chua, with support from corporate partner Sophie Mathur.
Partner Peiying Chua, commented:
“We are honoured to have worked with ACCESS on the Code of Practice from a legal and strategic perspective since its initiation. New technologies have dramatically altered the financial landscape, and digital currencies are now a powerful payment method, with growing global acceptance. The launch of the Code of Practice is timely and marks a significant step forward in Singapore’s digital economy. It is the first of its kind – being the result of wide-ranging industry collaboration, which provides well-defined guidance focussed on AML and CFT requirements. It allows digital asset players to operate and expand while being fully compliant with Singapore law.”
Chairman of ACCESS, Anson Zeall, added:
“The Code of Practice aims to be an industry standard to ensure that crypto-firms have put in place sufficiently robust AML and CFT measures while taking into account their risk assessments. Along with the accompanying practice guide, it provides practical regulatory guidance to new types of payments activities such as e-wallets and cryptocurrency exchanges. Through this initiative, we hope to point both global and local digital payment service providers in the right direction to successfully obtain their operating licenses and expand their presence in Singapore. Ultimately, we would like to drive a more robust digital economy and promote confidence in the use of e-payments.”
Linklaters is the sole appointed law firm to advise on the Code of Practice, an inaugural industry-changing initiative – further demonstrating the firm’s position as one of the top law firms in the fintech and cryptocurrency space. The firm’s fintech team has been an active market participant, advising established financial institutions and corporations, as well as other participants in the fintech ecosystem, including governments and regulators, industry associations and emerging players, on both transactional and regulatory aspects of their fintech projects across Asia and globally.
