Crypto regulation in Singapore

No wonder Singapore often happens to be the first on the list of countries when it comes to choosing a place for starting a crypto business in Asia. The main reason is Singapore being one of the four Asian tigers. Specifically, Tigers demonstrate promising conditions for business activity, a high level of economic development, and an advanced technological sector. The Tigers’ priority is to cultivate knowledge-intensive industries. As for the level of robotics implementation and computerization, Singapore holds second place in Asia after Japan.

This post will focus on the crucial aspects of crypto activity regulation in Singapore. Thus, this short read will come true in handy for those who seek to improve their knowledge of the Singaporean crypto market conditions before registering their own crypto exchange there.

Fiat currency transactions

Singapore has a quite casual cryptocurrency regulation. This characteristic is very attractive for companies who look for such jurisdictions: the one that is suitable for an easy start of a business, with financial statements that are filled out quickly, and in a generally technologically advanced country.

In Singapore, companies based there are requested to obtain a license prior to providing currency exchange services. In addition, all businesses that accept money and transfer it to foreign individuals are supposed to have a license as well.

Before starting a crypto exchange in Singapore, do not forget: companies that facilitate trade offers with security tokens are regulated as “in an organized market” according to the Securities and Futures Act.

Cryptocurrency derivates

Monetary Authority of Singapore (MAS), the country’s main financial regulator, has lately submitted a proposal: local exchanges would be able to list and trade cryptocurrency derivatives. It was stated that if the derivatives (futures and options) would be referred to as an asset in the Ethereum or Bitcoin contract, their circulation is to be regulated by the local securities laws.

The regulator mentioned that this initiative was put forward reacting to a request of institutional investors starting with asset managers to hedge fund managers who wished for more clarity in the regulations. The proposal should make cryptocurrency investments in Singapore more accessible for international financial players.

Interestingly, MAS is convinced that clear regulatory requirements for cryptocurrencies and a coherent approach to cryptocurrency derivatives trading among regulators are necessary conditions for creating a reliable source of the asset value of cryptocurrency derivatives contracts.

Taxation conditions

Frequently, Singapore is a popular jurisdiction for conducting ICO or registering cryptocurrency companies. The entrepreneurs should be aware that companies that receive cryptocurrencies as income, mine, and trade cryptocurrencies are subject to regular income tax rules.

Are you looking for more information about crypto business regulation in Singapore? Contact COREDO and we will arrange a personal consultation for you that will include recommendations regarding registering a crypto exchange or establishing a crypto asset business not only in Singapore but also in other Asian countries.