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Overview
In Singapore, obtaining a crypto license requires compliance with the regulations set by the Monetary Authority of Singapore (MAS) under the Payment Services Act. Companies intending to offer cryptocurrency services must register and apply for either a standard payment institution license or a major payment institution license, depending on the scale of their operations. The application process involves submitting a comprehensive business plan, robust AML/CFT (Anti-Money Laundering and Countering the Financing of Terrorism) policies, risk management strategies, and detailed information about the company’s key personnel. Once granted, the crypto license allows the company to legally operate in Singapore, offering services such as digital payment token services, exchanges, and wallet services. Maintaining the license requires ongoing compliance with MAS regulations, including regular reporting, audits, and adherence to strict AML/CFT standards. Engaging with legal and regulatory experts who specialize in Singaporean financial laws can facilitate the application process and ensure continuous compliance.
Timeframe: around 12 months
Minimum paid up capital: The minimum share capital requirement for obtaining a crypto license in Singapore depends on the type of license. For example, for a Major Payment Institution (MPI) license, the minimum base capital is SGD 250,000, while for a Standard Payment Institution (SPI) license, it’s SGD 100,000.
Overview
Singapore, a leading financial hub in Southeast Asia, is renowned for its robust market economy and business-friendly environment, making it an ideal location for companies in finance, cryptocurrency, and payment sectors. The country’s low tax rates and pragmatic regulatory approach enhance its appeal to both local and international businesses.
Comprehensive Guide to Company Incorporation
General information
Company structure
- ▪At least one shareholder is required to establish a crypto company in Singapore. This can be an individual or a corporate entity.
- ▪A crypto company must have at least one director who is a resident of Singapore. Additional directors may be non-residents.
Confidentiality
- ▪Beneficial owners’ details – disclosed to the Authorities
- ▪Shareholders’ details – part of public record
- ▪Directors’ details – part of public record
Taxation
Singapore has a favorable tax regime for crypto businesses:
- ▪Corporate Tax: The corporate tax rate is 17% on profits.
- ▪No Capital Gains Tax: Profits from crypto trading are generally not subject to capital gains tax.
- ▪GST Exemption: Cryptocurrencies are exempt from Goods and Services Tax (GST).
Accounting requirements
- ▪Filing annual report is obligatory
Secretary – Required
Registered office – A local office is mandatory. The business must have a registered office address in Singapore where official documents and notices can be served.
In order to obtain a license, the following steps will be carried out:
- ▪Initial Consultation: Engage with a legal or consulting firm to understand compliance requirements.
- ▪Prepare Documentation: Gather necessary documents, including business plans, compliance policies, and identification documents.
- ▪Submit Application: Apply to the Monetary Authority of Singapore (MAS) for the relevant license.
- ▪Review and Approval: MAS reviews the application, which includes assessing the company’s AML/CFT measures and financial health.
- ▪Issuance of License: Upon approval, the license is issued, allowing the company to commence crypto operations.
- ▪Company Constitution: Defines the structure and governance of the company.
- ▪Directors and Shareholders Information: Identification documents, proof of address, and detailed profiles.
- ▪Business Plan: Comprehensive plan outlining the business model, target market, and financial projections.
- ▪AML/CFT Policies: Policies to combat money laundering and terrorist financing.
- ▪Proof of Capital: Evidence showing the company has sufficient capital to meet minimum requirements.
- ▪Registered Office Details: Proof of the registered office address in Singapore.