Singapore has established itself as a global hub for financial innovation, particularly in the digital assets and cryptocurrency sectors. With its business-friendly policies, robust regulatory framework, and advanced technological infrastructure, Singapore offers a secure and transparent environment for crypto businesses. This guide provides a comprehensive overview of obtaining a crypto license in Singapore, covering regulatory requirements, application processes, and key considerations for establishing your business in this dynamic market.
Regulations for Digital Asset License in Singapore
The Monetary Authority of Singapore (MAS) regulates the cryptocurrency framework, ensuring compliance with anti-money laundering (AML) and counter-terrorist financing (CFT) laws. Businesses seeking a digital payment token (DPT) license must adhere to stringent guidelines, including financial reporting, cybersecurity standards, and consumer protection.
Key Regulatory Requirements:
- Compliance with AML/CFT regulations
- Implementation of robust cybersecurity measures
- Transparent financial reporting
- Consumer protection protocols
Types of Crypto Licenses in Singapore
Under the Payment Services Act, businesses can apply for one of two licenses:
1. Standard Payment Institution (SPI)
- Suitable for smaller transaction volumes
- Monthly payment volume cap: S$3 million** (domestic) / **S$6 million (cross-border)
- Minimum capital requirement: S$100,000
2. Major Payment Institution (MPI)
- Designed for high-volume transactions
- No transaction limits
- Minimum capital requirement: S$250,000
Services Covered Under MAS Regulation:
| Service Type | Description |
|---|---|
| Digital Payment Token Service | Facilitating cryptocurrency trading and exchange |
| Domestic Money Transfer | Local fund transfers |
| Cross-Border Money Transfer | International remittances |
| E-Money Issuance | Issuing digital currency for transactions |
Requirements for Obtaining a Crypto License
Incorporation & Documentation
- Legal incorporation in Singapore
- Local registered address
- Qualified compliance officer
- AML/KYC policies
Financial Requirements
- Minimum capital: S$100,000 (SPI)** / **S$250,000 (MPI)
- Government fees: S$5,000 (SPI)** / **S$10,000 (MPI)
- Annual licensing fees
Personnel & Infrastructure
- Singapore-resident director
- Compliance Officer with AML/CFT expertise
- Secure IT infrastructure
Roadmap to Obtaining a Crypto License
Step 1: Business Assessment & Incorporation
- Review business model & corporate structure
- Register with ACRA
Step 2: Application Submission
- Prepare compliance documents
- Submit to MAS
Step 3: Regulatory Review
- MAS evaluation (3–6 months)
- Additional documentation if required
Step 4: License Approval & Operational Launch
- Open corporate bank account
- Implement compliance protocols
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Advantages of a Singapore Crypto License
- Strong Regulatory Framework – Ensures AML/CFT compliance.
- Tax Benefits – Competitive corporate tax rate (17%).
- Global Credibility – Enhances trust with investors.
- Fintech Ecosystem – Access to innovation grants and support.
FAQ
1. How long does it take to get a crypto license in Singapore?
The process typically takes 6–9 months, depending on regulatory review.
2. What are the costs involved?
- Application fee: S$1,000 (SPI)** / **S$5,000 (MPI)
- Annual fees based on services
3. Do I need a physical office?
Yes, a registered address is required for compliance.
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