The Singapore Licensing Organization, which draws up the title package, is the Monetary Authority. The media often refers to it by the abbreviation MAS (The Monetary Authority of Singapore). It is the largest financial regulator of the state, which controls the situation and issues permits. Due to the flexibility in defining commercial criteria, a company can obtain one of three types of licenses:
Singapore’s cryptocurrency regulation only works with residents. It must be taken into account when doing business.
The legal justification for cryptocurrency transactions was obtained in 2019. The Singapore International Commerce Court has emphasized virtual money’s importance and determined it is a lawful means of holding property. Although formal tokens are not a technological means of payment, they have received all the characteristics of a monetary unit.
In the same year, a law was adopted that spelled out the procedure for providing payment services. It is significant that with national support, one of the largest crypto exchanges in the world, DBS Digital Exchange, operates in this country.
Crypto regulations strive to protect their citizens from money laundering, fraud and financial terrorism.
Singapore’s cryptocurrency regulations are enforced by the Monetary Authority Regulation (MAS), taking steps to conduct and protect crypto businesses from fraud legally.
Until recently, the regulatory body MAS has clarified its positions on crypto activities. But three years ago, the Payment Service Act 2019 was signed, based on which organizations exchanging cryptocurrency (for another cryptocurrency or fiat funds) must obtain a license (Small Payment Institution – a small payment organization or Major Payment Institution – the leading payment institution).
The leadership of the regulator has several options in which the placement of tokens on the sales platform falls under securities law. Such tokens are the top levers of the capital markets. And in January 2020, this country signed the PSA, which controls both classical and cryptocurrency transfers and exchanges. The purpose of the law is to provide a foundation for the registration of permits for exchanges dealing with cryptocurrencies. Thus, the Singapore crypto currency currently exists under the law’s conditions.
All prepared documentation necessary for obtaining a cryptolicense must strictly comply with the legal standards of the republic.
If the control authority cannot verify the data provided, the client will be notified that additional documents must be presented. Otherwise, the permit will be denied.
Therefore, an organization that has decided to invest in the crypto business must adhere to these requirements and be guided by laws.
If you decide to establish a crypto business in this country, you must go through the process of obtaining a permit:
For a crypto license, there are requirements for a company of such a plan:
Cryptocurrency exchanges are intermediaries in the process of exchanging virtual or fiat currency. Suppose a cryptocurrency exchange becomes an intermediary for purchasing and selling tokens under securities laws. In that case, obtaining a license for a full-fledged financial stock exchange will be necessary.
A token will be equivalent to security if it corresponds to this type:
These are the main types of tokens that are securities, but there are others.
A cryptocurrency license in Singapore has several requirements that must be met to obtain it:
Once the firm’s documents have been reviewed, the regulator initiates a review process. MAS also delves into the business model developed by the company to meet all the requirements and document the organization’s financial capabilities.
Please note that the laws of this country must execute all documents submitted for verification. If the company cannot confirm its financial position with the papers provided, MAS has the right to request additional information. And if this is issued to them, then the company will be allowed to obtain crypto licenses.
Therefore, a company that has decided to invest in the crypto business must adhere to the requirements and be guided by the framework of the republic’s legislation.
Following all these requirements and not violating the laws of this country, the company has every chance of being licensed.
The financial conditions for starting the crypto-exchange work provide the costs of paying for the crypto currency exchange license and filling the authorized capital. For the company to start working, the amount of invested funds should be at least 166 thousand euros. This volume is insurance against the emergence of one-day firms.
The state fee for opening a business is 15,000 euros. It is an average figure against the rates adopted by other regulators. Verification of all submitted documents is at most 6 months.
The progressive token trading tax rate is quite peculiar in Singapore. The legislation considers the sale of cryptocurrencies as a barter process, which lowers fiscal requirements. If the operating turnover ceiling is met, income earned is taxed at the standard rate without progressive deductions. They are assigned only if the annual turnover turns out to be higher than 1,000,000 dollars in local currency. In this case, the rate of 7% is applied.
If you need help understanding the peculiarities of the regulation of the crypto industry in this jurisdiction, you can contact the specialists of our company. They will conduct a full consultation, tell you what you need to pay attention to and answer all your questions. Usually, such a consultation lasts quite a long time, so we advise you to allocate the whole day for it.
Analyze all the data and decide that this jurisdiction is proper for you for licensing. Our specialists will help you register your organization here, collect the necessary documents and check how your company meets all the requirements of government regulators.
You can issue a power of attorney to our lawyers, who represent your interests in various organizations; for example, they can open a bank account for you or rent an office. They will also help to hire local staff, if necessary.
Thus, if you want to obtain a work permit in this jurisdiction, you can only do with the help of specialized lawyers. Our specialists will help you at all stages of licensing and make this process as simple and fast as possible
Obtaining a crypto exchange license is one of the most critical stages in the work of any crypto organization. If you want to register a company in this country, you should expect the licensing process to be challenging. Still, you will have the opportunity to enter a new market or create a company that works legally and actively develops in an up-and-coming country in the crypto industry.
Today, several book organizations have received permission to operate in this jurisdiction; among the most famous are Coinbase and Blockchain.com. They have been thoroughly vetted by regulators and proven they are ready to work by local laws.
Singapore financial legislation is loyal concerning financial transactions with virtual currencies. Support for such a business is at the highest level. Precise regulation of these actions continues the state economic growth policy.
Fiscal features here are favorable for business organizations. The income tax is a pleasant 17%. At the same time, there is no provision for an increase in deductions with an increase in profits. This feature arose because crypto transactions are considered swaps, meaning their regulatory norms differ from currency requirements.