Crypto license in Singapore, what is the procedure for obtaining it?

Singapore is an island city-state in Southeast Asia, renowned for its leading role in digital technologies and considered one of the best locations worldwide for IT businesses, fintech, and crypto projects. In this jurisdiction, cryptocurrency is recognized as an official means of payment at the state level, and cryptocurrency exchanges and trading are legal.

According to the Payment Services Act (PSA), companies offering digital payment token services are required to obtain a crypto license from the Monetary Authority of Singapore (MAS). These services include cryptocurrency exchanges, companies with low transaction volumes and low consumer risk (SPI), and large companies with significant transaction volumes (over 3 million SGD per month) and high risk levels (MPI).

Advantages of obtaining a cryptocurrency license in Singapore include:

• A well-thought-out and flexible regulatory policy allowing companies to operate legally.
• The high level of prestige of the jurisdiction instills trust among market participants in licensed companies.
• A developed banking and financial infrastructure, coupled with a high level of digitization, enhances the convenience and efficiency of working with digital assets.
• A supportive regulatory policy and government support for crypto startups at the state level.
• A favorable tax environment for businesses dealing with cryptocurrencies.

The procedure for obtaining a crypto license in Singapore varies depending on the type of economic activity chosen, such as for exchange points and exchanges, the registration process and document requirements differ. However, some common procedures include:

• Business registration with the establishment of a legal entity in Singapore.
• Opening a corporate account and capital injection.
• Local presence in the country with a physical office, hiring employees, including a resident director.
• Preparation of necessary documents.
• Preliminary internal audit.
• Payment of government fees and submission of an application for a cryptocurrency activity license to MAS.