If you want to open a cryptocurrency company in Singapore, you need to register a business and apply for one of the available licenses. Our local specialists can assist with the incorporation and licensing procedures for such an enterprise.
| Quick Facts | |
|---|---|
| Special legislation available (YES/NO) | YES, the Guide to Digital Token Offerings, the Guidelines on the Regulation of Markets, the Futures and Securities Law |
| Regulatory authority | Monetary Authority of Singapore (MAS) |
Types of entites used to register the company | Most type of companies can be used, however the LLC is preferred to open a cryptocurrency company in Singapore |
| Local manager required (YES/NO) | YES |
| Minimum capital requisites (YES/NO) | NO |
| License required (YES/NO) | YES, cryptocurrency exchange license must be obtained as per certain criteria |
| Licensing exceptions (YES/NO) | YES, companies that do no trade digital coins are not required to obtain a license |
| Timeframe to register the company (approx.) | It takes approximately one week to open a cryptocurrency company in Singapore |
| Anti-money laundering regulations applicable (YES/NO) | YES, all crypto companies must respect such regulations |
| Specific requirements for foreign investors (YES/NO) | NO |
| Activities permitted for crypto companies | ATM setup, crypto mining, e-wallet creation, etc. |
| Other special requirements applicable (YES/NO) | YES, cryptocurrency companies must create offers for a minimum number of 50 investors per year; the offer cannot exceed SGD 55 million for the respective year |
| Taxation of cyrpto companies in Singapore | Corporate tax of 17% must be paid by cryptocurrency companies in Singapore |
| Why choose Singapore | Regulated sector, the existence of the Cryptocurrency and Blockchain Industry Association for small companies, low corporate tax with the possibility of obtaining various tax reductions |
| Support in launching a cryptocurrency business (YES/NO) | YES, we can help you open a cryptocurrency company in Singapore |
| Steps to register a crypto company in Singapore | – company name reservation, – documentation preparation and filing, – tax registration, – licensing. |
Documents required to open a crypto business | – Articles of Association, – details about the shareholders and directors, – trading name reservation form, – proof of share capital, – whitepaper, – prospectus. |
Requirement to hire specialized staff (YES/NO) | Yes, in accordance with the MAS’ guidelines. |
| Crypto-related internal policies requirement (YES/NO) | Yes, such regulations are also required when opening a crypto company in Singapore. |
| Local bank account requirement (YES/NO) | Yes, just like for any other domestic company. |
| Singapore legal address required (YES/NO) | Yes. |
| License issuance requirements | – having a physical address in Singapore, – having local employees. |
| Possibility to establish a crypto business as a branch/subsidiary (YES/NO) | Yes, foreign crypto companies can also operate in Singapore provided they comply with the local regulations. |
| Most popular digital currencies in Singapore | – Bitcoin, – Ethereum, – Ripple, – Litecoin. |
| Audit requirements (if any) | Annual audits are required for such companies. |
| Available anti-money laundry regulations | Notice 626 for the Prevention of Money Laundering. |
| Tokens recognized by the MAS | Utility, payment, securities tokens. |
| Know Your Client (KYC) requirements (YES/NO) | Yes. |
| Difficulty degree in setting up a crypto company (if any) | The procedure to create a crypto company is quite simple, provided the documentation is fully and correctly prepared. |
| Access to double tax treaties (YES/NO) | Yes, to approximately 100 double tax agreements. |
Table of Contents
Are cryptocurrencies legally recognized in Singapore?
Yes. They are regulated by the Monetary Authority of Singapore (MAS).
Can I open a cryptocurrency company in Singapore as a foreigner?
Yes, as no restrictions apply based on investor nationality.
What are the steps to set up a cryptocurrency company in Singapore?
The following:
- business form selection;
- trading name reservation;
- documents drafting;
- bank account opening;
- tax registration;
- licensing.
What is the most suitable business form for a cryptocurrency company in Singapore?
Our local specialists recommend the private limited liability company. However, you can also opt for a public limited liability company.
What is the minimum capital requirement to open a crypto company in Singapore?
If you choose the private limited liability entity, there is no required minimum share capital. For a joint stock company, it is SGD 50,000.
NOTE! Apart from the company’s capital (if applicable), you must also consider the requirement for the associated type of crypto license.
What are the conditions to open a crypto company in Singapore?
You need to meet the standard Singapore company formation requirements, meaning:
- securing a local registered address (the virtual office is an option);
- appointing at least one resident director (foreign citizens can also be appointed provided they obtain a work and residence permit);
- drafting a feasible business plan.
What are the types of crypto licenses issued by MAS?
There are 2 types of crypto licenses available in Singapore:
- the Standard Payment Institution (SPI) license;
- the Major Payment Institution (MPI) license.
When can I apply for an SPI crypto license in Singapore?
If the company’s transaction volume does not exceed SGD 3 million per month for a single type of payment service or SGD 6 million for 2 or more services.
When is an MPI license required?
When the SPI thresholds are exceeded.
What are the capital requirements applicable for the SPI and MPI crypto licenses in Singapore?
- SGD 10,000 for the SPI license;
- SGD 250,000 for the MPI license.
Note: a SGD 100,000 deposit is also required for an MPI license.
We also invite you to watch our video on how to open a company in Singapore as a cryptocurrency business:
What are the obligations to comply with after setting up a company in Singapore for crypto operations?
It is important to make sure that:
- the business has its own internal policies for operating cryptocurrencies;
- it has the capability of assessing the risks associated with its operations, as well as the measures to reduce them;
- it appoints or hires persons who are authorized to operate under the MAS’ regulations;
- it monitors the operations and records all transactions completed on its platform (records of the transactions must also be kept);
- it keeps information on its clients, as well as it identifies suspicious transactions, and reports them to the relevant authorities;
- it completes regular reports with the MAS;
- it offers continuous training to its employees.
What forms can digital tokens take in Singapore?
Digital tokens can take one of the following forms:
- that of financial assets;
- that of payment tokens;
- that of utility tokens.
Foreign investors should also know that Singapore is among the few countries in the world to have a Cryptocurrency and Blockchain Industry Association dedicated to small and medium-sized enterprises (SMEs) operating in this field.
Also, setting up a company in Singapore in the cryptocurrency sector is cheaper than other known destinations, such as Liechtenstein or Switzerland in Europe.
Dubai is also considered a favorite crypto destination and if you are interested in opening a company there we can put you in touch with our local partners from BridgeWest Dubai who can also help you obtain a trade license in UAE.
If you want to open a cryptocurrency company in Singapore and need assistance, do not hesitate to contact our specialists in company formation in Singapore. You can rely on us if you want to obtain a crypto license in Singapore or open any type of company in the city-state.