Singapore has emerged as one of the most crypto-friendly jurisdictions in the world, offering a balanced mix of regulatory clarity, strong reputation, and business incentives. For companies aiming to establish a legitimate and scalable presence in the digital asset space, obtaining a crypto license in Singapore is a strategic move. This guide explores the key benefits, regulatory framework, application requirements, and tax advantages of launching a licensed cryptocurrency business in Singapore in 2025.
Why Singapore Is a Leading Hub for Crypto Businesses
As a globally respected financial center, Singapore provides an ideal environment for fintech and blockchain innovation. The city-state’s political stability, robust legal system, and forward-thinking regulatory approach have attracted numerous crypto exchanges, wallet providers, and blockchain startups.
The Monetary Authority of Singapore (MAS) has taken a proactive stance in regulating digital assets, ensuring both investor protection and market integrity. With the Payment Services Act (PSA) of 2019 now fully in effect, Singapore has established a clear licensing regime for businesses dealing with Digital Payment Tokens (DPTs)—a category that includes cryptocurrencies like Bitcoin and Ethereum.
👉 Discover how to position your crypto business under Singapore’s trusted regulatory framework.
Core Keywords:
- Singapore crypto license
- MAS licensing
- Digital Payment Token (DPT)
- Crypto regulation Singapore
- Payment Services Act 2019
- Cryptocurrency exchange license
- Anti-money laundering (AML) compliance
- Fintech in Singapore
Key Advantages of a Singapore Crypto License
1. Global Reputation and Trust
Operating under a Singapore license enhances your company’s credibility. MAS is recognized worldwide for its rigorous standards and transparent oversight. A licensed crypto firm in Singapore signals legitimacy to users, investors, and partners across Asia and beyond.
2. Regulatory Clarity and Transparency
Unlike many jurisdictions with ambiguous or evolving rules, Singapore offers a well-defined legal structure. The PSA outlines precise obligations for DPT service providers, including:
- Customer due diligence
- Transaction monitoring
- Record-keeping
- Reporting suspicious activities
This clarity reduces compliance risks and helps businesses build sustainable operations.
3. Business-Friendly Environment
Singapore boasts:
- Stable economy and efficient infrastructure
- Strong intellectual property protection
- Access to skilled talent in finance and technology
- Active government support for blockchain innovation through initiatives like the National Blockchain Strategy
The country also ranks highly in ease of doing business, making it simple to set up and scale operations.
4. Competitive Tax Regime
Singapore does not impose:
- Capital gains tax on cryptocurrency holdings
- VAT or GST on crypto-to-crypto transactions (since January 2020)
Instead, profits from regular trading activities are treated as taxable income at the corporate rate of 17%, which is among the lowest globally. Additionally, qualifying startups may benefit from tax exemption schemes for their first three years.
👉 Learn how to optimize your crypto business structure for maximum compliance and growth.
Understanding the Regulatory Framework
The Payment Services Act (PSA) is the cornerstone of crypto regulation in Singapore. Under this law, any entity providing DPT services—such as exchanging or transferring cryptocurrencies—must obtain a license from MAS.
There are three types of licenses under the PSA:
- Standard Payment Institution (SPI) – For smaller firms with transaction volumes below specified thresholds.
- Major Payment Institution (MPI) – For larger operators with higher transaction values.
- Exempt Payment Institution – Limited scope; not suitable for most crypto businesses.
It's important to note: if your platform deals with tokens classified as securities (e.g., security tokens or STOs), you will also need a Capital Markets Services (CMS) license under the Securities and Futures Act (SFA).
MAS also enforces strict anti-money laundering (AML) and countering the financing of terrorism (CFT) requirements. All licensed entities must implement risk-based controls and report suspicious transactions promptly.
Requirements for Obtaining a Crypto License in Singapore
To qualify for a DPT license, your company must meet several key criteria:
Legal and Operational Requirements
- Be incorporated in Singapore as a private limited company
- Maintain a physical office address in Singapore
- Appoint at least one director who is ordinarily resident in Singapore
- Establish comprehensive internal policies covering AML/CFT, cybersecurity, and risk management
Governance and Leadership
Strong corporate governance is mandatory. Your board should include:
- Chief Executive Officer (CEO)
- Chairman
- Board members with relevant financial or technological expertise
Additionally, MAS expects:
- Formation of board committees (e.g., Audit Committee, Nomination Committee)
- Senior management with clean records and proven industry experience
- Clear separation of duties between executive and non-executive roles
Risk Management Systems
You must implement systems to:
- Monitor transactions in real time
- Detect and prevent money laundering
- Safeguard customer funds and data
- Ensure business continuity during disruptions
MAS evaluates these systems thoroughly during the application review.
Step-by-Step Application Process
Step 1: Company Incorporation
Register your business with the Accounting and Corporate Regulatory Authority (ACRA). Choose a name, appoint directors and shareholders, and secure a local registered address.
Step 2: Prepare Documentation
Gather essential documents, including:
- Business plan outlining services, target markets, and growth strategy
- Organizational chart and resumes of key personnel
- Risk assessment report and AML/CFT policies
- IT security framework and audit logs
- Financial projections for at least three years
Step 3: Submit Application to MAS
File your application via the MAS FinTech Portal. Include all required forms, declarations, and supporting materials.
Step 4: Review and Due Diligence
MAS typically takes 6 to 8 months to process applications. During this period:
- Officials may request additional information
- Background checks on directors and major shareholders are conducted
- Your operational readiness is assessed
Step 5: License Grant or Rejection
If approved, you’ll receive your license and can begin operations. If rejected, MAS provides feedback, though appeals are limited.
Ongoing Compliance Obligations
Licensing is just the beginning. Licensees must:
- Submit regular financial and compliance reports to MAS
- Undergo annual audits by approved firms
- Notify regulators of any material changes (e.g., ownership, senior staff)
- Pay annual supervision fees based on license type
For example:
- SPI application fee: SGD 1,000
- MPI application fee: SGD 1,500
- Annual supervision fees range from SGD 2,000 to SGD 20,000+, depending on scale
Frequently Asked Questions (FAQ)
Q: Do I need a license if I only offer crypto-to-crypto trading?
A: Yes. Any exchange service involving DPTs requires a license under the PSA.
Q: Can foreign nationals apply for a Singapore crypto license?
A: Yes, but at least one director must be a Singapore resident (citizen, PR, or employment pass holder).
Q: How long does it take to get approved?
A: Typically 6–8 months, depending on application completeness and business complexity.
Q: Is there a minimum capital requirement?
A: Yes. SPIs need SGD 100,000 in paid-up capital; MPIs require SGD 1 million.
Q: Are stablecoins regulated in Singapore?
A: Yes. If used as DPTs, they fall under the PSA. Issuers must comply with reserve and disclosure rules.
Q: Can I operate globally with a Singapore license?
A: While the license allows international customers, you must still comply with local laws in other jurisdictions where you serve users.
👉 See how top-tier platforms maintain compliance while expanding globally.
Final Thoughts
Singapore continues to lead the way in creating a balanced, innovation-friendly regulatory environment for crypto businesses. With clear rules, strong enforcement, and attractive tax policies, it remains one of the best places to launch a compliant digital asset venture in 2025.
Whether you're building a new exchange, wallet service, or blockchain infrastructure provider, securing a MAS license positions your business for long-term success in Asia and beyond.