Crypto License in Singapore requires more than choosing a popular jurisdiction. Crypto, virtual asset, exchange, custody, brokerage, and payment-related activities are assessed through the business model, client countries, AML/KYC controls, governance, source of funds, technology stack, and local regulatory perimeter. Bergers Legal can help structure the file before any application or registration step is taken.
What is Crypto License in Singapore?
Crypto License in Singapore usually refers to the authorization, registration, or compliance status required for businesses that provide virtual asset, exchange, custody, brokerage, payment, or related services in Singapore. Requirements depend on the exact activity, client geography, AML/KYC controls, governance, and local regulator expectations.
Who this service is for
- Crypto exchanges, brokerages, OTC desks, custodians, wallet providers, and virtual asset service providers.
- Fintech or payment businesses adding digital asset services to an existing model.
- Founders comparing jurisdictions for licensing, substance, banking, and compliance workload.
- Groups preparing AML/KYC policies, risk assessments, transaction monitoring procedures, and governance documents.
- Businesses that need a regulator-ready explanation of their activity, clients, technology, and controls.
What problem this service helps solve
Crypto licensing problems often come from vague business models, weak AML documentation, unclear token or custody flows, unsupported banking assumptions, or choosing a jurisdiction before the regulatory perimeter is understood. A structured review helps align corporate setup, compliance controls, and application materials before external review begins.
How Bergers Legal can assist
- Reviewing the proposed business model, ownership structure, and target markets before documents are prepared.
- Identifying the documents, compliance policies, and corporate records that are usually expected for the case.
- Coordinating local counsel, registered agent, or filing support where local execution is required.
- Preparing or reviewing corporate, compliance, and application materials so they are consistent and regulator-ready.
- Guiding follow-up questions, corrections, and post-setup compliance steps without promising a final approval outcome.
Step-by-step process
- Initial consultation and crypto business model mapping.
- Regulatory perimeter and jurisdiction suitability review.
- Corporate structure, ownership, governance, and substance analysis.
- AML/KYC, risk assessment, compliance, and operational document preparation.
- Application, registration, or local filing support where applicable.
- Follow-up support for regulator questions, banking readiness, and ongoing compliance planning.
Documents and information usually required
- Detailed business model, services, target markets, client types, and transaction flows.
- Ownership chart, UBO information, director and senior manager profiles.
- AML/KYC policy, risk assessment, sanctions screening, and transaction monitoring approach.
- Technology, custody, wallet, security, outsourcing, and vendor information where relevant.
- Financial projections, source of funds, and operating budget where requested.
- Corporate documents, compliance officer details, and local substance information where required.
Estimated timeline
The timeline for crypto License in Singapore depends on the regulatory route, document quality, corporate setup, compliance readiness, local service providers, and regulator or authority questions. A realistic timetable should be set only after the business model and required documentation are reviewed.
Costs and pricing factors
Costs usually depend on the jurisdiction, activity scope, corporate setup, local substance, compliance documentation, legal review depth, regulator or government fees, number of UBOs and managers, and whether ongoing compliance support is needed.
Risks and mistakes to avoid
- Choosing a jurisdiction before confirming the real operating model, client geography, and compliance burden.
- Submitting generic AML/KYC or corporate documents that do not match the actual activities of the business.
- Underestimating substance, governance, reporting, renewal, or ongoing compliance requirements.
- Starting bank, payment provider, or regulator discussions before the ownership and source-of-funds file is complete.
- Treating timelines and costs as fixed when they depend on third-party review, regulator questions, and document quality.
Detailed jurisdiction notes
Singapore is one of the most crypto-friendly jurisdictions in the world and remains a key destination for digital asset businesses. The country combines a strong financial system, an innovation-oriented regulatory environment, and clear licensing mechanisms for payment and crypto-related services.
Bergers Legal provides full legal support for registering cryptocurrency companies and obtaining crypto licenses in Singapore, including structuring, compliance, and licensing assistance.
Overview of the Singapore Crypto Market
Singapore is a major financial center in Southeast Asia and is widely known for its efficient legal system, developed market economy, and business-oriented regulatory approach. It is particularly attractive for businesses operating in finance, payments, digital assets, and fintech.
The jurisdiction has become one of the few global markets where cryptocurrency exchanges and digital payment token service providers are regulated directly by law. Since the adoption of the Payment Services Act 2019, companies exchanging cryptocurrencies for fiat or other digital assets have generally been required to obtain an appropriate license from the Monetary Authority of Singapore (MAS).
If a company expands into tokenized instruments that qualify as securities, additional licensing requirements may apply under the securities regime.
Advantages of obtaining a cryptocurrency license in Singapore
Reputation and credibility
Singapore is one of the world’s most respected financial centers. A license issued in this jurisdiction strengthens the market position of a crypto business and increases confidence among partners, customers, and investors.
Clear regulation and transparency
The regulatory framework is structured and continuously updated. MAS provides guidance and clarification, making the rules more predictable for market participants.
Favorable business climate
Singapore offers a stable legal environment, strong infrastructure, and broad support for innovation, including blockchain and digital asset technologies.
Attractive tax framework
The jurisdiction is known for moderate corporate taxation, the absence of VAT on qualifying digital payment token transactions, and the possibility of zero tax treatment on certain offshore profits.
Access to international markets
As a major global financial hub, Singapore gives crypto companies access to both regional and global markets, as well as strong partnership and expansion opportunities.
Requirements for Obtaining a Crypto License in Singapore
To obtain a cryptocurrency license in Singapore, a company must generally satisfy several organizational and compliance-related requirements.
Corporate and local presence requirements
The applicant must:
- be incorporated in Singapore;
- maintain an actual office in Singapore;
- appoint at least one Singapore-resident director.
Operational and compliance requirements
The company must:
- implement a risk management framework appropriate for crypto activities;
- maintain transparent procedures for token listing;
- establish a transaction database and internal reporting system;
- notify MAS of material operational changes;
- comply with AML requirements, privacy obligations, and other relevant regulations.
Governance requirements
The company is also expected to maintain an appropriate internal governance structure, including:
- a chairman;
- a CEO;
- board members;
- internal governance committees such as audit, nomination, and conflict-resolution functions.
Senior personnel must have the necessary qualifications, financial services experience, and a strong professional reputation.
Types of Crypto Licenses in Singapore
Under the Payment Services Act 2019, companies providing digital payment token services may operate under several licensing models depending on the scale and structure of their activities.
Standard Payment Institution (SPI)
This license is suitable for smaller businesses operating within transaction limits.
Main characteristics:
- permits digital payment token services, including exchange, trading platform operations, transfer, custody, and related payment infrastructure;
- monthly transaction limit of SGD 3 million for one service type;
- aggregate monthly limit of SGD 6 million for two or more payment services;
- e-money float limit of SGD 5 million;
- minimum capital usually around SGD 100,000.
Major Payment Institution (MPI)
This license is intended for larger businesses with higher transaction volumes.
Main characteristics:
- no transaction volume limits;
- security deposit requirement of SGD 100,000 or SGD 200,000, depending on the services provided;
- stricter requirements for risk management, cybersecurity, and internal controls;
- minimum capital exceeding SGD 250,000;
- more intensive ongoing reporting obligations.
Money Transfer License
This license applies to domestic and international transfer activity, including fiat and crypto-related transfers where relevant.
It may be relevant for:
- money transfer services within and outside Singapore;
- fiat exchange;
- crypto-to-fiat and crypto-to-crypto exchange activity where structured under the relevant payment service category.
The exact conditions depend on the scale and structure of the business.
License Comparison
License Comparison
| Feature | SPI | MPI | Money Transfer License |
|---|---|---|---|
| Transaction limits | Up to SGD 3 million per service; up to SGD 6 million in total | No restrictions | No restrictions |
| Electronic money limit | Up to SGD 5 million | No restrictions | No restrictions |
| Authorized capital | SGD 100,000 | SGD 250,000 and above | Individually determined |
| Security deposit | Not required | SGD 100,000–200,000 | Individually determined |
| Permitted activities | Crypto services and payment services | Large-scale payment services and e-money | Exchange and transfer of currencies, including cryptocurrencies |
The process and timeline for obtaining a crypto license in Singapore
Singapore applies a clear but demanding licensing process under MAS supervision.
Step 1: Establishment of a legal entity
The company is incorporated in Singapore, usually as a private limited company. At this stage, the company must ensure:
- office space in Singapore;
- local staffing;
- appointment of a resident executive director;
- opening of a corporate account;
- funding of the required capital.
This stage usually takes about 2 weeks.
Step 2: Preparation for application
The company develops and formalizes its compliance and internal control system.
This generally includes:
- AML/CFT policies;
- cybersecurity procedures;
- risk management documentation;
- business plan;
- financial projections;
- data and client-fund protection measures;
- appointment of an AML compliance officer.
This stage usually takes around 6 weeks.
Step 3: Application submission and review
The application is filed with MAS, which reviews the corporate structure, financial standing, internal controls, and compliance readiness.
MAS may assess:
- incorporation documents;
- financial statements;
- ownership and founder data;
- operational and compliance documentation;
- risk and control policies.
Interviews and additional information requests may also occur. This stage may take from several weeks up to 6 months.
Step 4: Decision and license issuance
If MAS is satisfied that the applicant meets the required standards, the license is granted and the company may lawfully begin the relevant crypto activities.
Overview of Crypto Regulation in Singapore
Overview of Crypto Regulation in Singapore
| Parameter | Value |
|---|---|
| Project time frames | 12 months |
| State fee for application | US$1,000 |
| Required share capital | US$100,000 |
| Corporate income tax | 17% |
| Annual supervision fee | — |
| Local staff member | AML Officer, Director |
| Physical office | Required |
| Accounting audit | Required |
| Sustainability | Sustainable |
| Bank account options | European EMIs |
Crypto regulation in Singapore
Singapore was one of the first jurisdictions to introduce a state-controlled regulatory framework for cryptocurrency and digital payment token services.
The principal regulator is the Monetary Authority of Singapore (MAS). The main legal acts governing the sector include:
- Securities and Futures Act 2001;
- Payment Services Act 2019;
- related amendments and sector-specific guidance.
The Payment Services Act introduced the concept of digital payment tokens (DPTs) and made it necessary for relevant service providers to obtain an appropriate payment institution license.
As of April 4, 2024, amendments to the Payment Services Act extended the regulatory perimeter further. The updated rules apply to businesses involved in the transfer or exchange of digital tokens, even where they do not directly hold customer assets in the same way as traditional custodians.
The framework now places increased emphasis on:
- segregation of customer assets;
- strong accounting controls;
- asset protection;
- AML/CFT compliance;
- operational resilience.
MAS has also taken a cautious stance toward retail-facing crypto activity and has introduced restrictions in certain retail investment contexts.
In addition, crypto businesses must be aware of other relevant laws, including:
- Financial Advisers Act;
- Insurance Act;
- Trust Companies Act;
- Personal Data Protection Act (PDPA).
Singapore also maintains a public registry of licensed crypto-related entities, which improves market transparency and reinforces trust.
Licensing fees
Singapore imposes application and supervisory fees depending on the type of license.
Application fees
For digital payment token services:
- application for a Standard Payment Institution license — S$1,000;
- application for a Major Payment Institution license — S$1,500.
The same fee levels generally apply where an existing payment institution license is modified to include digital payment token services.
Supervisory fees
Annual supervisory fees also apply and depend on the type of license and the services used by the licensee.
Taxation of crypto activities in Singapore
Singapore does not have a separate standalone tax regime for cryptocurrencies. Tax treatment depends on the nature of the business activity and how the crypto assets are used.
Corporate income tax
If cryptocurrency trading forms part of the company’s ordinary business, the profits may be subject to corporate income tax at the standard rate of 17%.
GST treatment
From January 1, 2020, the Inland Revenue Authority of Singapore (IRAS) removed GST from qualifying digital payment token transactions. However, some crypto-related services may still fall within taxable service categories depending on their nature.
Tax exemptions
Certain Singapore tax resident companies may qualify for startup tax exemptions, subject to ownership and structural requirements.
Capital gains
Singapore does not generally impose capital gains tax. Therefore, long-term investment gains from digital tokens may not be taxable, provided the activity is not treated as a trading business.
The actual tax outcome depends on factors such as:
- purpose of acquisition;
- transaction frequency;
- holding period;
- whether the activity is investment or trading in nature.
Conclusion
Singapore remains one of the most attractive jurisdictions for launching and scaling a crypto business. Its advantages include a respected regulatory framework, a strong international reputation, access to global financial markets, and a clear licensing structure for digital payment token services.
At the same time, the licensing process is rigorous and requires careful preparation, strong compliance systems, and an appropriate corporate structure.
Bergers Legal assists clients at every stage of the process — from company incorporation and compliance design to MAS application support and ongoing regulatory readiness
Next steps
If you are considering Crypto License in Singapore, share the business model, ownership structure, target markets, and current documents with Bergers Legal. The team can review the case, identify missing information, and outline practical next steps by Telegram, WhatsApp, email, or consultation request.
