Licensing process for digital assets businesses
Setting up a digital assets business in the country involves several key steps to ensure compliance with local regulations and secure exchange licenses in Singapore. Here’s a process overview:
→ Pre-application preparation: a crypto company must gather the necessary documentation, including a business plan, compliance policies, and details of key personnel as well as conduct a risk assessment to ensure all regulatory requirements will be met. Prepare the safety deposit (100,000 SGD for a Standard Payment Institution, 200,000 SGD for a Major Payment Institution)
→ Submission of application: crypto companies must apply to Singapore MAS along with the required documents, fees. The application must include detailed information about business operations, risk management policies, cybersecurity measures.
→Initial review: MAS reviews the application for completeness and may request additional information or clarification.
→Assessment and due diligence: MAS conducts a thorough assessment, including due diligence checks on the applicant and key personnel. The applicant’s compliance with AML and CTF regulations is also evaluated.
→Decision: MAS considers whether the application complies with regulatory standards before deciding whether to give the license. Remember that creating a legal entity and receiving a favorable judgment from MAS entails having a registered office in the country and at least one resident director.
→Issuance of cryptocurrency license: Singapore MAS issues relevant license, if approved, allows the natural/legal entity to operate as a digital payment token service provider. Such a license is crucial for businesses involved in the exchanges of cryptocurrencies.
Benefits you will get
Crypto licenses available in Singapore offer numerous advantages to companies dealing with crypto assets. Let’s explore some of them.
Singapore's clear, comprehensive regulations for cryptocurrency businesses reduce uncertainty and enable smoother operations. The crypto license framework ensures businesses understand their compliance obligations from the start.
Singapore actively supports fintech and blockchain innovation with incentives and programs, frequently issuing guidelines to aid the industry.
English is the primary language, making it easier for businesses to navigate legal and regulatory requirements and conduct operations smoothly. Additionally, all regulations are available in English.
With competitive tax rates and policies, Singapore offers financial advantages that attract businesses seeking cost-effective solutions. These favourable tax policies are a significant benefit for businesses.
The country serves as a gateway to Eastern and Western markets, offering crypto exchanges in Singapore unmatched access to diverse markets and customer bases.
The country’s thriving innovation ecosystem, with incubators, accelerators, and research institutions, supports startup growth and fosters business success.
Singapore's highly educated, skilled workforce provides businesses with top tech and financial talent. Companies establishing a crypto presence can leverage this talent to drive innovation and operational excellence.
The country’s cutting-edge infrastructure is essential for developing blockchain and other advanced technologies. It supports operations in licensed Singapore services, from digital payment tokens to broader fintech innovations.
How we can assist you?
→ Consultation. We offer expert consultations to help you understand the legal and regulatory landscape of the Singaporean digital asset market.
→ Business model analysis and structuring. We analyze your business model and assist with structuring your legal entity to ensure compliance with local regulations and optimize operational efficiency. This includes understanding the implications of corporate income tax and other financial obligations.
→ Document preparation and submission. Our team helps gather and prepare all necessary documentation for obtaining the appropriate licenses and permits, including the Singapore crypto license.
→ Regulator interaction. We manage interactions with regulatory authorities, ensuring smooth communication and adherence to all regulatory requirements.
→ Post-licensing support and consultation. We provide ongoing support and consultation even after the licensing process is complete, helping you navigate any regulatory changes, maintain compliance, manage your income tax obligations.
