Singapore is one of the leading international financial hubs in Asia and worldwide. Global capital has been flowing…
Singapore is one of the leading international financial hubs in Asia and worldwide. Global capital has been flowing to Singapore for years. Despite this, the Singapore regulator Monetary Authority of Singapore (MAS), is determined to keep up with the times and offer the issuance of crypto licenses in Singapore to meet the needs of a new market.
Benefits of obtaining a crypto license in Singapore
The undeniable advantages of obtaining a cryptolicense in Singapore are:
1. Prestige — a company with a Singaporean license, has the opportunity to open an account with the prestigious DBS Bank, as well as work with most banks around the world;
2. Perspective — a local license is an ideal solution for projects planning to work with the Asian region;
3. Functionally — the license allows you to provide a broader range of services than its counterparts in other countries. Thanks to loyal regulation, it is possible to carry out transactions with traditional fiat and cryptocurrencies;
4. Loyal taxation — no corporate tax on income earned outside Singapore and tax on dividends. Relatively low tax rates on domestic profits.
Crypto exchange license Singapore: requirements
xchanges offering cryptocurrency trading are regulated as digital payment token service providers under the Payment Services Act 2019. As far as security tokens are concerned, they are subject to the same securities laws as traditional securities. Therefore, an exchange that allows the trading of securities tokens is governed by the Securities and Futures Act and is subject to the same rules that apply to securities exchanges (stock exchanges). Nowadays, two types of licenses allow you to work with cryptocurrency in Singapore: Standard Payment Institution (SPI) license and Major Payment Institution (MPI) license.
Regardless of the license obtained, a crypto company must meet the following criteria:
1. Requirements for the economic presence of a company in Singapore:
- Availability of a local office;
- The presence of an executive director resident in Singapore or two directors, at least one of whom will be a resident of Singapore (including a non-executive director);
- AML Officer who is a resident of Singapore
2. Directors, founders, and shareholders must have a good business reputation;
3. Qualified staff;
4. Availability of required documents:
- Business plan;
- KYC and AML policies;
- Availability and implementation of anti-money laundering measures;
5. Annual internal and external audits;
6. Payment of authorized capital.
Price and terms of obtaining a crypto license in Singapore
Although the procedures for obtaining SPI and MPI licenses are identical and take an average of 12 months, the requirements and license options differ. At the beginning of 2022, 13 Standard Licenses and 169 Major Licenses were issued in Singapore, determined by the proportional benefits of the “major” license.
| Criterion | Standard License | Major License |
| Authorized capital | 100 000 сингапурских долларов | 250 000 сингапурских долларов |
| Insurance deposit | No | 200 000 сингапурских долларов |
| Limits |
| No |
| Government fee | 1000 SGD /service | 1500 SGD /service |
How to get a crypto license in Singapore
If you are interested in obtaining a crypto license in Singapore, please contact SBSB Fintech Lawyers. Since 2013, we have been working with the FinTech and Crypto areas, offering individual solutions to each client, considering the company’s business model. Our experts will help you choose the best type of license and prepare a package of documents, legalizing the crypto business in accordance with Singaporean laws and providing full legal support of this process.
