Singapore has emerged as one of the most forward-thinking and crypto-friendly jurisdictions in the world. With its robust regulatory framework, political stability, and strategic location in Asia, it's no surprise that global blockchain startups and cryptocurrency exchanges are setting up shop in the city-state. The Monetary Authority of Singapore (MAS) oversees digital asset operations under the Payment Services Act (PSA) 2019, ensuring clarity, compliance, and consumer protection.
If you're planning to launch or expand a crypto exchange or digital payment service in Asia, obtaining a Singapore crypto license is a strategic move that enhances credibility, ensures regulatory compliance, and opens doors to international markets.
Why Obtain a Crypto License in Singapore?
Getting licensed by MAS isn’t just about legality—it’s a powerful signal of trust and professionalism. Here’s why Singapore stands out:
✅ Global Reputation & Regulatory Clarity
As a respected international financial hub, Singapore offers unmatched legitimacy. A MAS-regulated license signals to investors, partners, and users that your platform operates under strict oversight.
✅ Transparent and Evolving Regulations
MAS provides clear guidelines for digital payment token (DPT) services, anti-money laundering (AML), cybersecurity, and corporate governance. This transparency reduces uncertainty and supports long-term planning.
✅ Pro-Innovation Business Environment
Singapore actively encourages fintech innovation. Its government-backed initiatives, grants, and sandboxes allow crypto businesses to test new models safely.
✅ Favorable Tax Regime
There is no capital gains tax, no VAT/GST on cryptocurrency transactions (as of 2020), and competitive corporate tax rates (17%). Eligible startups may also qualify for partial tax exemptions on their first $200,000 of income.
✅ Access to Asian and Global Markets
Singapore’s strong diplomatic and financial ties make it an ideal gateway to Southeast Asia and beyond. Being MAS-compliant increases your chances of securing banking partnerships and global collaborations.
Key Requirements for a Singapore Crypto License
To obtain a license under the PSA 2019, your company must meet several structural, operational, and compliance criteria:
- Be incorporated as a Singapore private limited company (Pte. Ltd.)
- Maintain a physical office in Singapore
- Appoint at least one resident director who is a Singapore citizen or permanent resident
- Hire key personnel including a Chief Executive Officer, AML Compliance Officer, and board members with relevant experience
- Establish comprehensive risk management, cybersecurity, and AML/CFT (Combating the Financing of Terrorism) policies
- Implement systems for transaction monitoring, customer due diligence (CDD), and suspicious activity reporting
- Keep audited financial statements and submit regular reports to MAS
The board should include committees such as audit, nomination, and conflict resolution to ensure sound governance.
Types of Crypto Licenses in Singapore
Under the Payment Services Act 2019, businesses dealing with digital payment tokens (DPTs)—such as Bitcoin, Ethereum, and stablecoins—must obtain one of two primary licenses:
🔹 Standard Payment Institution (SPI) License
Best suited for smaller-scale crypto businesses with limited transaction volumes.
Key Features:
- Allows DPT services: buying, selling, exchanging, storing
- Monthly transaction cap: SGD 3 million per service, SGD 6 million total across multiple services
- Maximum e-money balance: SGD 5 million
- Minimum paid-up capital: SGD 100,000 (~USD 74,900)
- No security deposit required
Ideal for startups testing the market or focusing on niche offerings.
🔹 Major Payment Institution (MPI) License
Designed for larger platforms handling high-volume transactions.
Key Features:
- Unlimited transaction volumes
- Required security deposit: SGD 100,000–200,000, depending on services offered
- Higher capital requirement: minimum SGD 250,000 (~USD 187,000)
- Stricter risk controls, cybersecurity protocols, and reporting obligations
- Subject to ongoing supervision by MAS
Recommended for exchanges aiming for scalability, institutional clients, or cross-border operations.
💬 Additional Licensing Option: Money-Changing License (Activity G)
For firms offering fiat-to-fiat or crypto-to-fiat exchange services without full DPT licensing. This can be added alongside SPI/MPI if needed.
👉 Learn how top-tier platforms structure their compliance to meet MAS standards quickly.
Step-by-Step Licensing Process & Timeline
Obtaining a MAS crypto license typically takes 6 to 12 months, depending on application completeness and regulatory review speed.
Step 1: Company Formation in Singapore
- Register a Pte. Ltd. entity
- Lease a local office
- Appoint local director(s) and officers
- Open a corporate bank account
- Deposit minimum authorized capital
Step 2: Develop Compliance Infrastructure
- Draft AML/CFT policies
- Build KYC/KYB procedures
- Set up transaction monitoring systems
- Appoint AML compliance officer
- Prepare cybersecurity framework
Step 3: Submit Application to MAS
Submit required documents:
- Business plan and operational model
- Financial projections
- Organizational chart and resumes of key personnel
- Risk assessment report
- Internal control frameworks
MAS may conduct interviews or request additional information during due diligence.
Step 4: Await Approval & Commence Operations
Once approved:
- Pay applicable fees
- Fulfill any conditions set by MAS
- Begin regulated operations
Application Fees:
- SPI license: SGD 1,000
- MPI license: SGD 1,500
- Adding DPT service to existing license: SGD 1,000–1,500
Annual supervisory fees apply post-approval.
Regulatory Updates: What You Need to Know in 2025
MAS continues to refine its approach to digital assets:
- As of April 2024, updated PSA rules require client asset segregation, strict accounting practices, and enhanced security for all licensed providers—even those not holding crypto directly.
- International transfers of digital assets are now subject to regulation regardless of where funds are received.
- In late 2023, MAS restricted crypto firms from marketing services to retail investors, citing volatility risks—meaning B2C platforms must adapt their go-to-market strategies.
- Spot Bitcoin ETFs remain unavailable to retail clients, though institutional access is under review.
MAS also maintains a public registry of licensed entities—boosting transparency and helping users verify platform legitimacy.
Taxation of Crypto Businesses in Singapore
While there’s no specific “crypto tax,” general tax principles apply:
- Corporate Income Tax: Profits from active trading or exchange services are taxed at 17%
- GST/VAT: Exempt for DPT transactions since January 2020
- Capital Gains: Not taxed—ideal for long-term digital asset holdings
- Tax Incentives: Qualifying companies may receive up to **75% exemption on first $100K income**, plus 50% on next $100K
IRAS evaluates whether gains are from trading (taxable) or investment (non-taxable) based on frequency, intent, and holding period.
Always consult a qualified tax advisor familiar with IRAS guidelines.
Frequently Asked Questions (FAQs)
What is the cost of a crypto license in Singapore?
The application fee ranges from SGD 1,000 (SPI) to SGD 1,500 (MPI). Additional costs include legal setup (~SGD 5,000–15,000), compliance systems, staffing, office rental, and annual supervisory fees.
Do I need a license to operate a crypto exchange in Singapore?
Yes. Any business facilitating the exchange or transfer of digital payment tokens must be licensed under the PSA 2019 unless exempted (e.g., closed-loop tokens or low-risk use cases).
Can foreign founders get a Singapore crypto license?
Yes—but they must incorporate a local entity, appoint at least one resident director, and maintain a physical presence in Singapore.
How long does it take to get approved?
Typically 6–12 months, depending on application quality and responsiveness during MAS review.
Are there restrictions on serving retail customers?
Yes. Since late 2023, MAS has imposed tighter rules limiting promotions and advertisements targeting retail investors. Platforms must implement safeguards like risk warnings and investment caps.
Is cryptocurrency legal tender in Singapore?
No. Cryptocurrencies are not legal tender but are recognized as property or digital assets. Their use in payments is allowed between consenting parties but not encouraged for everyday transactions.
👉 See how leading exchanges achieve full compliance while scaling rapidly across Asia.