Singapore Code of Practice aims to help firms secure payment service license

A new Code of Practice has been launched in Singapore, aimed at helping more blockchain firms secure a payment service license.

The code was announced by the Association of Cryptocurrency Enterprises and Start-ups (ACCESS), and has been backed by regulators the Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore.

Comprised of over 400 member firms, ACCESS was founded back in 2014 to support the cryptocurrency sector in forming regulation and ensuring compliance standards. The Code has been some two years in development, with public consultation running last year to inform the process.

The Code aims specifically at the Payment Services Act, which governs the need for companies in the sector to obtain a license. This applies to companies offering payment services such as digital payments and digital token exchange services, among other things.

According to the Act, companies engaging in these activities must have a payment service license in place before they can do so, as well as a host of other compliance requirements. This includes adhering to rules set by the Financial Action Task Force, including the so-called Travel Rule.

The Code of Practice contains guidance on the application process, as well as providing standards for compliance across key areas including Know-Your-Customer (KYC) provisions and measures to tackle money laundering and terrorism financing.

The Code comes as the latest step forward from Singapore, with regulators keen to make the city-state a global leader in the emerging blockchain and digital asset sectors. It follows on from the launch of Sandbox Express in 2019, a sandbox service aimed at allowing rapid innovation and testing in a regulatory-free environment.

The ACCESS Code of Practice is the latest innovation emerging from Singapore in support of the sector, with more firms expected to take advantage in applying for and securing a payment service license in the near future.