Nikita Veremeev
11.08.2025 | 6 min read
Updated: 11.08.2025
In 2025, over 40% of global investments in the crypto industry will be accounted for by Asia, and Singapore, according to CB Insights, is among the top three global leaders in the number of new fintech and crypto startups. However, behind this growth lies a paradox: despite the launch of MiCA in the EU, many international companies prefer company registration in Singapore and obtaining a cryptocurrency license here. Why? The answer lies in the unique combination of regulatory flexibility, transparency of AML compliance, and speed to market.
Today entrepreneurs face a dilemma: choose the EU with its MiCA 2025 and strict regulatory frameworks or bet on Singapore, where the Monetary Authority of Singapore (MAS) creates conditions for scaling and innovation. Which jurisdiction to trust for the strategic development of the business to avoid regulatory traps, ensure long-term sustainability, and gain access to Asian and global markets?
In this article, I will thoroughly analyze the key differences between Singapore and the EU (MiCA), based on the experience of the COREDO team in company registration, obtaining financial licenses, and supporting crypto businesses in both jurisdictions. If you are looking for more than just an overview, but practical guidance and strategic insights: I recommend reading to the end.
Crypto Regulation in Singapore and MAS
Singapore’s cryptocurrency regulation is not just a set of laws but a flexible ecosystem built around the Payment Services Act (PSA), Securities and Futures Act (SFA), and MAS initiatives. In recent years, the COREDO team has implemented dozens of projects for company registration in Singapore and obtaining cryptocurrency service licenses, which has allowed us to develop effective market entry strategies.
Crypto Services License in Singapore
The Payment Services Act (PSA) has become a key tool for regulating digital assets, including cryptocurrencies, stablecoins, and tokenized assets. To obtain a cryptocurrency license in Singapore, you need to go through a multi-level Due Diligence procedure, prepare a corporate structure in Singapore, and implement KYC procedures fully compliant with FATF standards. In COREDO’s practice, we support clients at every stage, from application submission to interaction with MAS, ensuring transparency and risk minimization.
MAs pays special attention to AML compliance: companies must implement transaction monitoring systems, automated KYC procedures, and conduct regular AML risk assessments. This approach not only reduces regulatory risks but also increases the trust of banks and partners.
Stablecoin and Tokenized Asset Regulation
Since 2024, MAS has implemented a separate regulatory framework for issuers of single-currency stablecoins (SCS) denominated in G10 currencies. Unlike MiCA, where algorithmic stablecoins are banned, and the requirements for issuers are extremely stringent, Singapore operates on a principle of proportionality: regulation depends on issuance volume and consumer risk.
Solutions developed by COREDO allow clients to efficiently structure the issuance of tokenized assets and stablecoins under MAS requirements, maintaining business model flexibility. Separate licenses and fund reservation requirements are provided for crypto exchanges, ensuring investor protection and operational transparency.
MiCA Requirements for Crypto Business in the EU
The introduction of MiCA 2025 marked a turning point for the crypto business in Europe. EU regulatory requirements now cover almost all aspects of virtual asset activities, from token issuance to the operation of crypto exchanges. However, COREDO’s practice shows that many companies face significant challenges in adapting to the new rules.
MiCA: Key Business Requirements
MiCA introduces a single license to operate in the entire EU market, theoretically simplifying entry into the European market. In practice, companies are forced to restructure internal processes, strengthen AML compliance, and implement new procedures for securities tokenization. It is important to consider the long transition period and the need for cross-border compliance, which increases project launch costs and timelines.
COREDO’s experience confirms: for certain business models (e.g., DeFi, multi-currency stablecoins, innovative payment services), MiCA requirements become a significant barrier, particularly regarding tokenization and crypto exchange regulation.
Ban on Algorithmic Stablecoins – New Requirements
MiCA unequivocally bans the issuance of algorithmic stablecoins and introduces strict reserve, disclosure, and corporate governance requirements for SCS (single-currency stablecoin) issuers. Unlike the Singaporean approach, where MAS assesses the risks of each issuer individually, MiCA sets uniform standards for the entire EU, limiting flexibility and innovation.
The COREDO team has repeatedly encountered cases where transitioning from the European to the Singaporean jurisdiction significantly reduced the regulatory burden and accelerated the launch of stablecoin projects.
AML and KYC: Singapore vs EU
AML compliance is a key factor for the sustainable development of a crypto business. Singapore and the EU have different approaches to implementing FATF and CFT standards, directly impacting due diligence procedures and AML risk assessment.
AML for Crypto Business in Singapore
Singapore’s AML compliance is built on principles of transparency, automation, and integration with the banking infrastructure. Compliance for crypto exchanges in Singapore includes mandatory implementation of KYC procedures for all clients, regular risk reassessment, and the use of advanced technologies for transaction monitoring. Special requirements apply to foreign companies to confirm the source of funds and beneficiaries.
Projects implemented by the COREDO team have shown that implementing best practices in AML/CFT not only meets MAS requirements but also increases trust from partners and investors.
AML and KYC Requirements: Europe vs Asia
In the EU, AML/KYC requirements are regulated by the AMLD5 directive and MiCA, leading to the unification of procedures but reducing flexibility. In Asia, and especially in Singapore, the approach is more risk-oriented: companies are given the opportunity to independently develop internal AML policies considering the specifics of the business and client jurisdiction.
COREDO’s practice confirms: for international companies operating simultaneously in the EU and Asia, it is critically important to build cross-border compliance and adapt due diligence procedures to different regulatory standards.
Company Registration in Singapore for a Crypto Startup
Company registration in Singapore is not only a quick market entry but also access to developed infrastructure, preferential taxation, and the high reputation of the jurisdiction. In recent years, the COREDO team has supported the registration of dozens of fintech and crypto startups, which allows us to highlight several key advantages.
How to Open a Fintech Company in Singapore
The process of registering legal entities in Asia, particularly in Singapore, is highly transparent: submission of documents to ACRA, charter approval, appointment of a director and corporate secretary, opening a bank account. For crypto startups, it is important to prepare a corporate structure in advance that meets MAS requirements and to implement innovative financial services such as security tokenization.
COREDO’s experience shows that a well-structured corporate setup in Singapore minimizes regulatory risks and simplifies further business scaling.
Access to Banking Services and Infrastructure
Singapore’s banking infrastructure is considered one of the most developed in the world. Obtaining a banking license in Singapore or a digital banking license opens up access to cross-border payments, investment products, and listing on the Singapore Exchange (SGX). For fintech companies, this is a strategic advantage, allowing rapid integration into the Asian ecosystem and attracting international investors.
Cross-Border Risks for International Companies
In the context of globalization, cross-border risks of crypto business come to the forefront. Companies face the need to comply with the requirements of several regulators at once, which requires a deep understanding of cross-border compliance and strategies for entering international markets.
MAS Regulation for Crypto Firms Working Abroad
MAS implements a comprehensive approach to regulating the cross-border activities of crypto firms: mandatory due diligence procedures, AML risk assessment, information exchange with foreign regulators. COREDO’s solutions allow clients to build processes that ensure compliance with MAS’s new rules for crypto assets and minimize overseas activity risks.
Special attention is paid to monitoring cross-border payments and verifying sources of funds, which is critically important for sustainable development and business scaling.
Issues with European and Asian Regulators
Simultaneous operation in the EU and Asia requires a prudent business structure and adaptation of compliance processes to different standards. COREDO’s practice has encountered cases where inconsistencies in due diligence procedures led to delays in token listing or account freezes.
For successful international market operations, it is important to pre-build a corporate structure that meets both MAS and MiCA requirements and implement international compliance standards.
MiCA and Regulation in Singapore: A Comparison
| Criterion | Singapore (MAS/PSA) | EU (MiCA) |
|---|---|---|
| Licensing | Flexible model, several types | Single license for the entire EU |
| AML/KYC | Strict requirements, FATF | AMLD5 directive, MiCA |
| Stablecoins | SCS, MAS regulation | Ban on algorithmic, strict issuer requirements |
| Corporate Governance | Corporate Governance Code | European standards |
| Cross-Border Activity | Support for innovations, regulatory sandbox | Restrictions, lengthy transition period |
| Banking Infrastructure | Developed, fintech licenses | Depends on the country |
Analyzing the differences, the solution developed at COREDO often involves a hybrid strategy: registering the head company in Singapore with subsequent obtaining of a cryptocurrency license, and for EU operations, creating subsidiary structures that comply with MiCA.
Crypto Startups in Singapore: Investment and Growth
Singapore not only offers favorable regulation but also creates unique conditions for scaling crypto businesses and attracting investments. Singapore’s investment attractiveness for fintech companies is confirmed by a high level of venture investments and active ecosystem development.
Business Scaling to Foreign Markets
Singaporean regulation opens opportunities for scaling crypto businesses in Asia and beyond. Through participation in international initiatives and support for innovative projects via a regulatory sandbox, companies can quickly test new products and enter G10 markets.
COREDO’s practice shows that a well-designed international market entry strategy not only minimizes cross-border risks but also significantly increases ROI.
ROI and Choosing Jurisdiction for Crypto Business
When choosing between Singapore and the EU, it’s important to consider not only direct licensing and compliance costs but also long-term sustainability, product-to-market speed, access to investors, and asset tokenization opportunities. At COREDO, we recommend using comprehensive ROI metrics, including regulatory risk assessment, capital cost, and corporate structure flexibility.
Practical Advice for Entrepreneurs
Based on years of experience, the COREDO team outlines the following steps for successful registration and launch of a crypto business in Singapore:
- Conduct a preliminary analysis of the business model considering PSA and SFA requirements.
- Prepare a corporate structure that meets MAS and Singapore Corporate Governance Code requirements.
- Implement automated KYC procedures and transaction monitoring systems.
- Develop internal AML/CFT policies considering the specifics of cross-border operations.
- Conduct AML risk assessment using international best practices.
- Choose a reliable consulting partner for registration and licensing support.
- Regularly update compliance procedures in line with regulatory changes.
Singapore or MiCA: What to Choose in 2025?
The strategic choice of jurisdiction for crypto business in 2025: it’s a balance between regulatory flexibility, market entry speed, and long-term sustainability. COREDO’s practice confirms that registering a business in Singapore provides access to the rapidly growing fintech ecosystem of Asia, a transparent and predictable regulatory environment, as well as scaling and investment attraction opportunities.
For companies focused on international markets and innovative financial services, Singapore becomes not just an alternative but a strategic development center. On the other hand, to maximize benefits, it’s important to pre-build a corporate structure that meets MAS and MiCA requirements and implement comprehensive AML compliance.
Checklist for Decision Making:
- Analyze the business model for PSA and MiCA compliance.
- Evaluate licensing and compliance requirements in both jurisdictions.
- Calculate ROI metrics considering regulatory risks and launch costs.
- Prepare a corporate structure considering cross-border activity.
- Implement AML/CFT best practices and KYC procedure automation.
- Consult with COREDO experts to develop an individual strategy.
Choosing Singapore is an investment in the flexibility, innovation, and sustainability of your crypto business for years to come.