Singapore has emerged as a global hub for cryptocurrency innovation, offering a clear regulatory framework for digital asset businesses. This guide explores the process of obtaining a cryptocurrency license in Singapore, highlighting key requirements and benefits for operators in 2025.
Understanding Singapore's Cryptocurrency Regulatory Framework
The Monetary Authority of Singapore (MAS) regulates crypto activities under the Payment Services Act (PSA), which classifies digital payment token services into three license types:
Standard Payment Institution License
- For businesses with monthly transaction volumes below SGD 3 million.
- Covers crypto exchange and brokerage services.
Major Payment Institution License
- Required for entities exceeding SGD 3 million monthly.
- Stricter capital and compliance requirements.
Money-Changing License
- Applicable to fiat-to-crypto exchanges.
Key Requirements for Crypto Licensing
- Local Entity Registration: Must establish a Singaporean company with physical office presence.
- AML/CFT Compliance: Implement robust anti-money laundering controls.
- Capital Requirements: No minimum capital for exchanges, but Major Payment Institutions must demonstrate financial stability.
- Management Team: Appoint local directors with clean regulatory records.
Step-by-Step Licensing Process
| Stage | Timeline | Actions |
|---|---|---|
| 1. Business Registration | 1–2 weeks | Incorporate company with ACRA. |
| 2. License Application | 6–8 months | Submit PSA application to MAS with business plan, AML policies, and financial projections. |
| 3. MAS Review | Variable | Respond to queries; possible interviews. |
| 4. Approval | – | Pay fees; commence operations under MAS oversight. |
Advantages of a Singapore Crypto License
👉 Why choose Singapore for crypto ventures?
- Tax Efficiency: 0% capital gains tax; corporate tax rate at 17%.
- Global Credibility: MAS-regulated status enhances trust.
- Market Access: Gateway to Asia’s thriving crypto economy.
Compliance and Ongoing Obligations
| Requirement | Details |
|---|---|
| AML/CFT Reporting | Quarterly transaction monitoring reports. |
| Annual Audits | Submit audited financial statements. |
| Staff Training | Regular updates on regulatory changes. |
FAQ: Singapore Crypto Licensing
Q1: Can foreign entities apply?
A: Yes, but must appoint local directors and maintain physical operations in Singapore.
Q2: What’s the cost of a crypto license?
A: Application fees start at SGD 1,000; total costs depend on legal/compliance complexity.
Q3: How long does approval take?
A: Typically 6–12 months for MAS processing.
Q4: Does Singapore allow NFT trading under these licenses?
A: NFTs are assessed case-by-case; additional MAS approvals may apply.
Q5: Are decentralized exchanges (DEXs) regulated?
A: Yes, if they facilitate trading of digital payment tokens.
Conclusion
Securing a Singapore Cryptocurrency Exchange License in 2025 positions businesses for growth in a respected regulatory environment. With its progressive policies and strategic location, Singapore remains a top choice for crypto entrepreneurs aiming to operate at scale.