Is crypto regulated in Singapore?

Singapore maintains a regulatory framework for cryptocurrency entities, referred to as digital payment token (DPT) providers within its jurisdiction. The Payment Services Act (PSA) provides the foundation for regulating DPT services, laying down the rules and standards for such providers in Singapore.

How do I get a crypto license in Singapore?

To secure a crypto exchange license in Singapore, the prerequisites include: 1. Establishing a significant economic footprint in Singapore. 2. Maintaining a reputable business standing among directors, founders, and shareholders. 3. Hiring qualified staff. 4. Preparing essential documentation. 5. Conducting annual audits. 6. Contributing the specified authorized capital.

Do you need a license to trade Cryptocurrency in Singapore?

In Singapore, whether you need a license to trade cryptocurrency depends on the nature of your activities. If you are trading on your own behalf without offering market-making services, you typically do not need a license. However, if you're providing services such as operating a crypto exchange or offering crypto custody, you will require a license under the Payment Services Act, regulated by the Monetary Authority of Singapore (MAS).

How much is a crypto license in Singapore?

Initially, the fee to apply for a cryptocurrency license in Singapore must be considered. For a standard payment institution license, which includes services for digital payment tokens, the application fee is S$1,000. In contrast, applying for a large payment institution license to offer the same services incurs a fee of S$1,500.

Where is the easiest place to get a crypto license?

LithuaniaEstoniaSingaporeDubaiSloveniaPortugalSwitzerlandGermanyMalta.

EXPLORE MAS CRYPTOCURRENCY LICENSE IN SINGAPORE

Singapore has emerged as an attractive location for cryptocurrency businesses, thanks to its clear regulatory environment for obtaining a crypto license. The country's financial authorities frequently update their guidelines, offering essential clarity for those looking to secure a crypto license in Singapore. Experts at Consulting24 are well-equipped to navigate the intricacies of registering a cryptocurrency company and obtaining the necessary licensing in this forward-thinking market.

Singapore Crypto License Cost

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WHAT IS SINGAPORE MAS?

The Monetary Authority of Singapore (MAS) holds the reins of the financial sector, notably in the crypto sphere, where a Singapore MAS crypto license is a gateway for businesses delving into the realm of digital assets. As Singapore's central bank, MAS ensures that the burgeoning cryptocurrency market operates within a framework that promotes trust, security, and compliance with international financial standards. This licensing is critical for maintaining the integrity of Singapore's financial system, inviting innovation while deterring illicit activities. For enterprises, it represents adherence to stringent measures that uphold Singapore's reputation as a global financial hub.

MAS is introducing stringent measures for Digital Payment Token (DPT) services:

🚫 No trade incentives

❌ No financing/leverage

💳 No credit card payments

💰 Limit crypto in net worth

Read the full announcement by MAS here.

License Type	Standard License	Major License
Authorized capital	100 000 Singapore Dollars	250 000 Singapore Dollars
Insurance deposit	No	200 000 Singapore Dollars
Limits	$3 million (or its equivalent in a foreign currency), for any one of those payment services; or $6 million (or its equivalent in a foreign currency), for 2 or more of those payment services;	None
Government fee	1000 SGD / yearly	1500 SGD / yearly

SINGAPORE CRYPTO LICENSE COST

Singapore crypto license cost includes initial application fees. Cryptocurrency license holders in Singapore are subject to ongoing supervisory costs, including an annual licensing fee set at $4,000. The fee structure is tailored to the category and scope of payment services offered by the licensee. For those operating within the payment systems domain, the fees correspond to the specific payment services provided.

Singapore’s regulatory framework for cryptocurrencies is primarily shaped by two pivotal legislations: the Securities and Futures Act (SAF) of 2001 and the more recent Payment Services Act of 2019, which came into effect in early 2020. The latter introduced the classification of "digital payment token" (DPT), compelling businesses that offer DPT services to secure a license under the designation of either Small Payment Institutions or Major Payment Institutions.

The Payment Services Act also specifies that service providers dealing exclusively with digital payment tokens released by a central bank or a financial institution for designated purposes are not required to obtain a license, as they fall under existing financial regulations.

Cryptocurrency exchanges must secure a license specifically when they act as trading platforms for tokens that are considered securities.

To trade utility tokens, a crypto exchange must additionally ensure compliance with a suite of financial regulations, including:

The Financial Advisers Act, which has been in force since 2001 and saw its latest revision in 2020;
The Trust Company Act, established in 2005 with a revised edition released in 2020;
Insurance Act, originally enacted in 1966 and updated in its 2021 edition.

singapor crypto license cost

CRITERIA FOR OBTAINING A CRYPTO LICENSE IN SINGAPORE

WHY SINGAPORE MAS CRYPTO LICENSE?

Singapore stands as a key financial hub in Southeast Asia, governed by a parliamentary republic system. Its advanced market economy and welcoming business environment are magnetic for companies within regulated industries such as finance, cryptocurrency, and payment services. As an esteemed global financial services center, Singapore commands global respect for its business-friendly tax regime and pragmatic fee regulation for both domestic and international companies.

A hallmark of Singapore's regulatory environment is its direct control over cryptocurrency exchanges, positioning it among a select group of nations with such oversight. From 2014 to 2018, the Monetary Authority of Singapore (MAS), the country's national regulator, took steps to demystify cryptocurrencies, Initial Coin Offerings (ICOs), and laid down frameworks for the licensing of cryptocurrency exchanges.

The regulatory scene evolved significantly in 2019 with the introduction of the Payment Service Act 2019. This act requires businesses involved in the cryptocurrency exchange to secure a specific license, with the option to be classified as a Small Payment Institution or a Major Payment Institution. This regulation affirms Singapore’s dedication to maintaining a regulated, yet innovative, cryptocurrency exchange environment that safeguards consumer interests and ensures compliance with financial norms. Singapore’s legislative strides in cryptocurrency regulation reinforce its reputation as a stable and regulated sanctuary for crypto enterprises, underscoring the strategic value of obtaining a Singaporean crypto license.

Schedule a complimentary 30-minute consultation to discuss obtaining a crypto license in Singapore.

Cryptocurrency exchanges, functioning as intermediaries for trading virtual currencies and fiat money, play a pivotal role in the market. It's essential to understand that when these exchanges expand their services to include buying and selling tokens deemed as securities, they must secure a crypto license in Singapore to operate legitimately as a full-scale stock exchange.

To obtain a crypto license in Singapore, companies must meet the following prerequisites:

Incorporate a business entity within Singapore;
Establish a physical office within the country;
Appoint at least one director who resides in Singapore;
Implement a risk management framework specifically designed for crypto operations;
Enforce stringent policies for the listing of tokens;
Notify the regulatory authority of any operational changes;
Comply with anti-money laundering laws, data protection norms, and other related legal requirements.

Additionally, Singapore’s regulatory body mandates specific roles for the staff of cryptocurrency firms, including:

A Chairperson;
A Chief Executive Officer (CEO);
Board Members;

The governance structure of the board should include:

An Audit Committee;
A Nominating Committee;
A Conflict Resolution Committee, among others.

Company leaders are expected to maintain exemplary ethical conduct, a spotless reputation, and to possess the necessary educational background and experience in finance.

ADVANTAGES OF OBTAINING A SINGAPORE MAS CRYPTO LICENSE

Enhanced Credibility: As a renowned global financial center, obtaining a crypto license from Singapore bolsters your firm's credibility, engendering confidence in clients and partners.
Clear Regulatory Environment: The clear-cut regulations and transparency in Singapore provide a solid foundation for cryptocurrency businesses to operate legally and with full regulatory compliance.
Fiscal Incentives: Singapore offers attractive tax benefits, including a competitive corporate income tax rate, no VAT on cryptocurrency transactions, and no tax on income from abroad.

STEPS AND SCHEDULE FOR ACQUIRING A MAS CRYPTOCURRENCY LICENSE IN SINGAPORE.

Company Incorporation: Begin by setting up a private limited company in Singapore, which marks the initiation of the licensing process. This step is followed by the preparation for the license application, including gathering necessary documents, developing a comprehensive business plan, detailing the business model, and establishing a risk management plan. The time needed for this preparation varies based on the business's complexity and document availability.

Filing with the Monetary Authority of Singapore (MAS): The full application for a crypto license Singapore MAS is presented to the MAS, the regulatory body overseeing this domain. MAS's review period can range from several weeks to months, and during this evaluation, they might ask for additional data or clarifications to thoroughly assess the application.

Review and Assessment: MAS evaluates the company’s compliance with the required standards for cryptocurrency businesses in Singapore, scrutinizing financial robustness, risk management practices, document accuracy, and adherence to regulations.

License Issuance: Following a thorough evaluation, MAS decides whether to grant the cryptocurrency license. If approved, the company is then officially licensed.

The entire process from application to receiving the license can take anywhere from 9 to 12 months, depending on the application's detail and document readiness.

For those looking for guidance through Singapore’s crypto regulation maze, Gofaizen & Sherle’s advisors offer their expertise. They stand ready to assist with questions and provide support throughout the licensing journey.