Singapore stands as a premier international financial hub in Asia and globally, attracting sustained capital inflows. The Monetary Authority of Singapore (MAS) has proactively adapted to market evolution by offering cryptocurrency licenses, enabling businesses to operate within a regulated framework.
Benefits of a Singapore Crypto License
Prestige
- Enables partnerships with top-tier banks like DBS Bank and global financial institutions.
Regional Focus
- Ideal for businesses targeting the Asian market.
Operational Flexibility
- Supports transactions involving fiat currencies and cryptocurrencies under loyal regulations.
Tax Advantages
- No corporate tax on foreign-sourced income; low domestic tax rates and tax-free dividends.
Singapore Crypto Exchange License Requirements
Cryptocurrency exchanges are regulated under the Payment Services Act 2019 as Digital Payment Token (DPT) Service Providers. Security tokens fall under traditional securities laws (Securities and Futures Act).
License Types:
- Standard Payment Institution (SPI)
- Major Payment Institution (MPI)
Key Requirements:
Local Presence
- Physical office in Singapore.
- Resident executive director OR two directors (one must be resident).
- Singapore-based AML Officer.
Reputation Checks
- Founders, directors, and shareholders must pass due diligence.
Documentation
- Business plan, AML/KYC policies, and compliance measures.
Audits
- Annual internal/external audits.
Capitalization
- SPI: SGD 100,000 | MPI: SGD 250,000 + SGD 200,000 insurance deposit.
Comparison Table: SPI vs. MPI
| Criterion | Standard License (SPI) | Major License (MPI) |
|-------------------------|----------------------------------|----------------------------------|
| Authorized Capital | SGD 100,000 | SGD 250,000 |
| Insurance Deposit | None | SGD 200,000 |
| Transaction Limits | SGD 3M/month (per service) | None |
| Govt Fee | SGD 1,000/service | SGD 1,500/service |
Costs and Timeline
- Processing Time: ~12 months.
- Costs: Vary by license type (see table above).
👉 Explore legal support for your Singapore crypto license
FAQs
1. What services can a licensed crypto business offer in Singapore?
- SPI/MPI holders can facilitate crypto/fiat transactions, trading, and custody services.
2. Is a physical office mandatory?
- Yes, Singapore requires a local office and resident personnel.
3. How does Singapore’s tax regime benefit crypto businesses?
- No taxes on foreign income and dividends, with competitive domestic rates.
👉 Need help navigating Singapore’s crypto regulations?
Conclusion
Securing a Singapore crypto license demands meticulous compliance but offers unparalleled market access and regulatory advantages. Partnering with experienced legal advisors streamlines the process.
For tailored guidance, consult SBSB Fintech Lawyers—experts in FinTech and crypto legalization since 2013.
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