Crypto license in Singapore
Presently, the Asian region’s largest economic hub and advancing economy are widely regarded as one of the most favorable global locations for IT businesses, fintech enterprises, and blockchain projects. The country’s government has implemented a prudent approach to cryptocurrencies, opting not to ban or fully legalize them in equivalence to traditional currencies. Entities functioning as digital currency exchanges are not mandated to obtain a crypto license in Singapore.
The state’s decision not to certify activities unrelated to securities serves as a significant attraction for crypto investors and entrepreneurs, enticing them to establish startups and venture into the markets of Japan, China, and Southeast Asia from this island nation. Commencing an IT startup or engaging in modern technology activities here is notably straightforward. While the legislation may initially appear stringent, it ensures a transparent and equitable working environment for all operators in the digital market. The country consistently ranks among the top three nations for ease of doing business, and its legislation is continuously updated to enhance the overall ease of operations.
Singapore crypto license
PACKAGE «COMPANY & CRYPTO LicenSe IN SINGAPORE»
- Legal entity registration
- Certificate of incorporation for the company registered in Singapore
- Articles of Incorporation
- Legal documentation outlining the company’s structure and governing principles
- Virtual Assets Service Providers Company License
- State fees
- Official company stamp for legal and business documentation
- Comprehensive legal document preparation
- Provision of a legal address for the company for one year
- Business Model and Structure Analysis
- General Counselling
Regulation and Transparency
Favorable business climate and innovative environment
Low income tax
Access to international markets
Securing the necessary permit is contingent on the chosen economic activity. For instance, the registration process and document requirements differ for a crypto exchanger and an exchange, but certain principles are universally applicable.
For individuals planning to engage in virtual money exchange (exchanger), there are three viable options. One can obtain a crypto exchange license in Singapore, register as a large payment institution (with monthly transactions exceeding $3,000,000), or opt for standard payment organization status (for monthly transaction volumes below $3,000,000). Additionally, having a registered legal entity in the country and confirming a physical presence on the territory (including a physical office, hired employees, and a local director) is imperative.
The initial step involves business registration in Singapore, followed by the payment of government fees and the application for an MCL license to facilitate cryptocurrency exchange (money changer’s license). Singapore houses a Payment License Institution capable of offering digital token services. Notably, entrepreneurs seeking authorization for cryptocurrency exchange are not obligated to contribute authorized capital.
The requirement for the physical presence of the enterprise in the country extends to those establishing an exchange. Service providers must implement robust controls to identify and prevent money laundering and illicit financing. Even during the document submission stage, comprehensive details on compliance practices for client verification and financial transaction monitoring must be provided. All currency exchange establishments must maintain meticulous records of customer activities and promptly report any suspicious transactions to the authorities.
Republic of Singapore
Obtaining the necessary permit is contingent upon the chosen economic activity, with distinct registration procedures and document requirements for various endeavours, such as a crypto exchanger and an exchange. Nonetheless, certain overarching principles apply.
For individuals contemplating the operation of a virtual money exchange (exchanger), three viable options exist. They can secure a crypto exchange license in Singapore, register as a large payment institution for monthly transactions exceeding $3,000,000, or opt for standard payment organization status if monthly transaction volumes fall below $3,000,000. Additionally, establishing a legal entity within the country and confirming a physical presence, including a physical office, hiring employees, and appointing a local director, is imperative.
The initial step involves registering the business in Singapore, followed by the payment of government fees and the application for an MCL license for cryptocurrency exchange (money changer’s license). Singapore hosts a Payment License Institution capable of providing digital token services. Notably, entrepreneurs seeking a mandate for cryptocurrency exchange are not obligated to contribute authorized capital.
The necessity for the enterprise’s tangible presence in the country extends to those establishing an exchange. Service providers must implement robust controls for detecting and preventing money laundering and illicit financing.
Even during the document filing stage, providing comprehensive details on compliance practices for client verification and financial transaction monitoring is essential. All currency exchange offices are required to maintain detailed records of customer actions and promptly report any suspicious transactions to the authorities. This meticulous approach ensures adherence to regulatory standards and safeguards against potential illicit activities within the financial system.
CRYPTO REGULATION IN SINGAPORE
|Period for consideration
|up to 12 months
|Annual fee for supervision
|State fee for application
|Local staff member
|Required share capital
|Corporate income tax
Embarking on the journey of establishing a private limited company in Singapore and initiating the application process for a cryptocurrency license involves a comprehensive approach. This encompasses the meticulous collection of essential documents, the formulation of a robust business plan, articulating the intricacies of the business model, implementing a sound risk management system, and compiling other requisite materials. The timeline for preparing the application is contingent on the intricacy of the business structure and the expeditious availability of necessary documentation.
Upon completion of the meticulous application preparation, the submission is made to the Monetary Authority of Singapore (MAS), the regulatory authority overseeing cryptocurrency licensing. The subsequent review period spans from a few weeks to several months, wherein MAS scrutinizes the submitted documents, undertakes verification procedures, and may seek additional information or clarifications.
In the subsequent Screening and Assessment phase, MAS rigorously assesses the company’s adherence to the stipulated requirements and standards set for cryptocurrency operators in Singapore. This includes a thorough examination of financial performance, scrutiny of the risk management system, validation of accurate documentation, and confirmation of compliance with prevailing legislation.
The pivotal stage involves MAS making a decisive determination on whether to grant or deny the coveted cryptocurrency license. In the event of approval, the company is duly conferred with the corresponding license. The duration of this process is contingent on various factors, including the complexity of the application, the thoroughness of documentation, and other pertinent considerations. On average, the approval process for obtaining a cryptocurrency license in Singapore spans approximately 6-8 months.
Navigating the nuances of the cryptocurrency industry, especially within the legislative landscape of Singapore, may initially appear intricate for newcomers. However, the adept professional advisors at Gofaizen & Sherle stand poised to assist in unravelling these complexities. They not only offer guidance in comprehending every facet of entrepreneurial ventures in this jurisdiction, but also actively address inquiries and provide unwavering support throughout the entirety of the process.
FREQUENTLY ASKED QUESTIONS
The industry is overseen by the Monetary Authority. In January 2020, the Payment Services Act was enacted to regulate both traditional and virtual token-based payments. Singapore also has various legislative measures aimed at detecting and preventing the illicit flow of funds through digital payment tokens.
Furthermore, the law on securities and futures is applicable to tokens categorized as capital market products, encompassing securities, financial derivatives agreements, and shares in a collective investment scheme. Organizations selling these products are required to obtain a cryptocurrency license in Singapore.
The acquisition cost encompasses services for registering a local legal entity or representative office, opening a bank account, engaging a nominee director, and registering an office in the country. Additionally, the state fee is a separate payment, contingent on the chosen type of activity (virtual assets exchange or major financial institution). Each project is approached on an individual basis. For a comprehensive offer tailored to your specific requirements, please reach out to us through your preferred communication method.
To become a virtual asset operator and obtain a cryptocurrency license in Singapore, submit records for a registered local or foreign legal entity with an official representative office in Singapore. If the company is not yet established, provide standard documents like passports of directors and shareholders, residential address details, a business description, and professional resumes with contacts.
Additionally, furnish documents confirming active commercial activities in the state, maintain a virtual office or registered address for subsistence requirements, and present details about the executive director, who must be a Singaporean citizen. Include information about all shareholders and founders. The regulator will also require proof of the professional experience and business reputation of managers and controllers, including education certificates and comprehensive work histories.
Ensure readiness with a business plan, privacy policies, and compliance procedures. The regulator may request documents to confirm the company's reliability, demonstrating its commitment to serving public interest and meeting the needs of the population.
Obtaining a crypto license in Singapore provides benefits such as regulatory credibility, access to a robust financial ecosystem, and the ability to operate in a well-established and progressive regulatory framework. It also enhances investor trust, facilitates business partnerships, and allows participation in the global cryptocurrency market.
Opening a bank account for a crypto business in Singapore may be challenging, but some banks may be open to it. It depends on compliance with regulations and robust AML/KYC procedures. Directly inquire with banks and consult local professionals for specific guidance.
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