Singapore crypto license
The largest economic center and progressive economy of the Asian region are assumed today to be almost the best location in the world for IT business, fintech, and blockchain projects. The country’s governments have adopted a wise policy regarding cryptocurrencies. They were not banned or legalized on a par with ordinary money. Institutions that act as digital money exchanges do not need to receive a Singapore crypto license.
The state decided not to certify activities that are not bonded to securities. This fact undoubtedly attracts crypto capitalists and entrepreneurs to the island nation to open a startup and enter the markets of Japan, China, and all of Southeast Asia.
Starting an IT start-up or working in modern technology here is quite easy. While the legislation may seem strict at first glance, it guarantees a transparent and fair working environment for all digital market operators. The country is in the TOP-3 countries in terms of ease of doing business. Legislation is constantly updated to make work even more comfortable.
What is Singapore crypto license?
Are all types of cryptocurrency activities really free in Singapore, or do you need some kind of special permission? Until recently, the state remained neutral in the regulation of virtual money. In 2020, a law on payment systems was passed, which stipulates that all activities related to securities are subject to licensing.
The new term “digital payment token” means a digital currency. Thus, cryptocurrency exchanges can freely provide services for exchanging cryptocurrencies for each other and for fiat money. Only the services of buying/selling those tokens categorized as securities are regularized by special decree are subject to a Singapore crypto exchange license.
Why should you choose www.fintecharbor.com to start a digital business in Singapore?
Doing business in the Republic of Singapore is very attractive to foreign investors. Nevertheless, there are certain market characteristics for those who wish to penetrate this region. Legislation is changing rapidly. Several major changes have been made in the last two years. Therefore, it will be difficult to submit documents and obtain the necessary license without the help of a lawyer.
Contact Fintecharbor to pick the suitable type of crypto license in Singapore for carrying out special actions, and to understand the nuances of taxation without spending a lot of time and nerves. Qualified counselors know the licensing process from A to Z and will guide you through all stages of collecting documents and contacting local authorized bodies.
The procedure of acquiring a crypto license in Singapore
Getting the required permit depends on the type of economic activity selected. So, for example, for a crypto exchanger and an exchange, there will be a different registration procedure and a list of documents. However, some principles are still general.
For those who plan to exchange virtual money (exchanger), there are 3 options. You can get a crypto exchange license in Singapore, register as a large payment institution (monthly transactions over $3,000,000), or as a standard payment organization (if the volume of transactions per month is less than $3,000,000). It is also necessary to have a legal entity registered in the country and confirm a physical presence in the territory (that is, have a real office, hire employees, and a local director).
The first step is to register a business in Singapore. Next, you need to pay government fees and apply for an MCL license to exchange cryptocurrencies (money changer’s license). In Singapore, there is Payment License Institution that can provide digital token services. Please note that an entrepreneur wishing to acquire a mandate for exchanging cryptocurrencies is not mandated to contribute authorized capital.
The requirement for the actual presence of the enterprise in the country also applies to those who open an exchange. Service suppliers must establish robust controls to detect and prevent money laundering and illicit financing.
Even at the stage of filing documents, it will be necessary to provide details on compliance practices that will be applied to the verification of clients and monitoring of financial transactions. All money exchange offices must keep detailed records of customer actions and inform authorities of suspicious transactions.
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I read a lot of articles about the regulation of the cryptocurrency business in Singapore, however, this information was scattered. Thanks to Fintecharbor lawyers and their thorough consultations, our partners and I were able to make an informed decision about entering this market.
We decided to invest in a digital startup of our partners from Asia. The island was chosen as a neutral platform for our IT business. We have been looking for expert consultants in the area of fintech and blockchain for a long time. It’s not as easy as finding a regular tax attorney. But now we can confidently recommend Fintecharbor in this matter.
My business partner recommended contacting this company about our new blockchain venture. We were looking for a stable jurisdiction where one can legally do this business, where there is transparent legislation and favorable taxation. Now, on the advice of our consultants, we are acquiring a permit, and everything is going smoothly. We hope to resume collaboration in the future.
FAQ
Is crypto regulated in Singapore?
The Monetary Authority oversees the industry. In January 2020, the Law on payment services was adopted. Its purpose is to control traditional and virtual token-based payments. There are also a number of legislative acts in the country that are intended to identify and stop the illegal flow of funds using digital payment tokens.
In January 2021, amendments were made in accordance with international standards. The definition of service providers has been expanded to require them to safeguard customers’ assets.
The law on securities and futures also applies to tokens if they are capital market products. These products include securities, financial derivatives agreements, and stakes in a collective investment scheme. Cryptocurrency license Singapore is demanded for organizations selling the products mentioned above.
In January 2021, amendments were made in accordance with international standards. The definition of service providers has been expanded to require them to safeguard customers’ assets.
The law on securities and futures also applies to tokens if they are capital market products. These products include securities, financial derivatives agreements, and stakes in a collective investment scheme. Cryptocurrency license Singapore is demanded for organizations selling the products mentioned above.
What are the requirements for cryptocurrency exchanges in Singapore?
Any cryptocurrency exchange must meet the basic criteria, regardless of whether it plans to obtain a license for tokens equated to securities or limit itself to cryptocurrencies and regular tokens.
The national regulator puts forward requirements for the staff of the exchange. In particular, the institution should be managed by a board of directors, which a local chairperson and CEO chair. The council should also include persons dealing with personnel issues, remuneration, compliance, audits, and conflict resolution.
All financial institutions must strictly adhere to AML legislation. Exchange owners should do everything possible to ensure that the site is not used for money laundering. It is necessary to identify the issuers of tokens before they are admitted to trading on the platform.
While a Singapore cryptocurrency exchange license is not required in all cases, business owners are required to comply with strict Singaporean laws. In order to avoid possible problems with the law, it is better to seek legal assistance from the specialists of Fintecharbor from the very beginning. We will help you register a business in Singapore, and if necessary, we will provide all kinds of support in obtaining a cryptocurrency license.
The national regulator puts forward requirements for the staff of the exchange. In particular, the institution should be managed by a board of directors, which a local chairperson and CEO chair. The council should also include persons dealing with personnel issues, remuneration, compliance, audits, and conflict resolution.
All financial institutions must strictly adhere to AML legislation. Exchange owners should do everything possible to ensure that the site is not used for money laundering. It is necessary to identify the issuers of tokens before they are admitted to trading on the platform.
While a Singapore cryptocurrency exchange license is not required in all cases, business owners are required to comply with strict Singaporean laws. In order to avoid possible problems with the law, it is better to seek legal assistance from the specialists of Fintecharbor from the very beginning. We will help you register a business in Singapore, and if necessary, we will provide all kinds of support in obtaining a cryptocurrency license.
What documents are required to become a virtual asset operator?
To acquire a cryptocurrency license in Singapore, you must submit records about a firm that is registered in the country. It can also be a foreign legal entity that has an official representative office in Singapore.
If you have not yet opened a company, you need to provide a standard package of documents, including passports of directors and shareholders, information about the address of residence, a brief description of the business, and a professional resume with contacts.
You also need to provide documents confirming that commercial activities are carried out in the state. For subsistence requirements, you need to have a virtual office or registered address. You do not need to have a headquarters; you can register a branch. It is necessary to provide documents about the executive director, who must be the president or a citizen of Singapore, as well as about all shareholders and founders.
In addition to the usual statutory documents, the regulator will also require proof of the professional experience and business reputation of the managers and controllers of the organization. You will need to present a certificate of education and a professional resume indicating all places of work. It is also important to supply evidence of the company’s operational readiness: a business plan, various privacy policies, and compliance procedures.
There are also a number of procedures for checking the company’s reliability. The regulator may request documents that, in their opinion, will confirm that the exchange will serve the public interest and meet the needs of the population.
If you have not yet opened a company, you need to provide a standard package of documents, including passports of directors and shareholders, information about the address of residence, a brief description of the business, and a professional resume with contacts.
You also need to provide documents confirming that commercial activities are carried out in the state. For subsistence requirements, you need to have a virtual office or registered address. You do not need to have a headquarters; you can register a branch. It is necessary to provide documents about the executive director, who must be the president or a citizen of Singapore, as well as about all shareholders and founders.
In addition to the usual statutory documents, the regulator will also require proof of the professional experience and business reputation of the managers and controllers of the organization. You will need to present a certificate of education and a professional resume indicating all places of work. It is also important to supply evidence of the company’s operational readiness: a business plan, various privacy policies, and compliance procedures.
There are also a number of procedures for checking the company’s reliability. The regulator may request documents that, in their opinion, will confirm that the exchange will serve the public interest and meet the needs of the population.
How much does it cost to acquire a Singapore crypto license?
The cost of obtaining a mandate includes services for registering a local legal entity or representative office, opening a bank account, services of a nominee director, and registration of an office in the country. Also, the state fee is paid separately based on the selected type of activity (virtual assets exchange or major financial institution). Each project is discussed individually. To get a detailed offer, please contact us in a way convenient for you.
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