Singapore was among the first jurisdictions where the regulation of cryptocurrencies was adopted at the state level. In general, this country is considered favorable for the activities of cryptocurrency exchanges and crypto start-ups.
Cryptocurrency companies are regulated by the Monetary Authority of Singapore (MAS). The main documents regulating the crypto sphere in the country are the Securities and Futures Act (SAF) of 2001 and the Payment Service Act 2019, which came into force at the beginning of 2020. The last one introduces the concept of a “digital payment token” (DPT) and those who want to provide any related services must obtain a license of a payment institution (Small Payment Institution or Major Payment Institution). It is important to note that a cryptocurrencies exchange license is required only for crypto exchanges that are going to act as intermediaries in trading operations with tokens that are subject to securities legislation.
MAS pays much attention to decentralized finance and takes an active position regarding the regulation of the crypto industry in Singapore. In 2022, several recommendations and consultation papers were issued to mitigate the risk of money laundering and terrorist financing through digital assets. Further changes to the regulatory framework are expected throughout 2023.
The Singapore Cryptocurrency and Blockchain Industry Association (CBIA) actively supports small and medium-sized businesses in this industry.
Advantages of Obtaining a Cryptocurrency License in Singapore
Registration of a cryptocurrency license in Singapore will provide a business working with digital assets with a number of advantages:
well-considered and flexible regulation that allows cryptocurrency companies to operate completely legally;
a high level of prestige of the jurisdiction, trust in the companies licensed here by all participants in the crypto market;
well-developed banking and financial infrastructure;
loyal to cryptocurrencies policy of the regulator (MAS), state support for innovative companies;
high level of digitalization of all spheres of the economy;
relatively low taxes.
What do you need to get a crypto license in Singapore?
A company applying for a cryptocurrency license in Singapore must meet the following requirements:
be registered in that jurisdiction;
confirm the presence of an office in the country;
have at least one Singapore resident director;
implement a system to manage risks specific to cryptocurrency activities;
develop and carefully follow fair and transparent rules for admitting tokens to the exchange;
develop an information base on ongoing transactions;
timely notify the regulator of all changes in the work of the exchange;
comply with AML legislation, privacy rules, etc.
The regulatory body also impose special requirements for the staff of a cryptocompany. The positions of chairman, CEO and members of the board of directors are mandatory. The board should include: an audit committee, an appointment committee, a conflict resolution committee, etc. The company’s executives must meet high ethical requirements and have good reputation.
The average term for approval of a crypto license in Singapore is 12 months.
Cost: 55 000 EUR + VAT. Note: the price may vary depending on the specific case.
For beginners in the cryptocurrency sphere, Singapore’s legislation in this area may seem complicated and confusing. Professional lawyers from COREDO will happily consult you on all issues of interest and help you deal with all aspects of your business activities in this jurisdiction.
