Cryptocurrency exchange formation in Singapore
Registration of the cryptocurrency exchange in Singapore is beneficial in 2020. The country has a favorable investment climate, and the national level of welfare has a tendency to grow. The state has relatively low tax rates, while the GDP per capita is one of the highest in the world.
Attitude to cryptocurrency in Singapore
At the moment, the cryptocurrency market is actively developing. In some countries, governments are cautious about the growth of such currency, while others are trying to regulate the market. Singapore has many advantages to launch the cryptocurrency. For example, it has well-developed measures to protect investors and prevent money laundering.
Many experts believe that Singapore has a healthy environment for block checks and crypto conversions. The Republic is considered to be one of the first block technology advocates.
Among the advantages of setting up the cryptocurrency business in the country is that there are no plans to regulate crypto conversions there, but the bank is still sensitive to money laundering and subsequent risks.
To avoid incidents related to cryptocurrency in the country, the government requires cryptocurrency intermediaries and exchange service operators to comply with money laundering laws. New legislation has come into force in the country, under which cryptocurrency companies can obtain a license to operate fully.
Obtaining a license: main features
Today Singapore is one of the few countries in which the activity of cryptocurrency exchanges is regulated by the existing legislation. Companies that specialize in currency exchange are required to obtain a permission.
Exchanges are intermediaries in the exchange of currencies. In case an exchange acts as an intermediary for the purchase or sale of tokens, a license of a full stock exchange is required.
There is a number of regulatory requirements that must be met when buying or selling tokens that are subject to securities laws:
- Have a risk management system;
- Do not commit illegal acts;
- Have all necessary resources to ensure the safe operation and safety of funds;
- Notify the relevant authorities of any discovered violations;
- Comply with all legal requirements.
Only if you comply with these requirements, you may be licensed and open a cryptocurrency exchange in Singapore 2020. All exchanges must comply with anti-money laundering laws. They are required to follow the procedure for identifying token issuers before placing tokens on the platform. For more information about obtaining a license, please contact our experts at IT-OFFSHORE.
Registration of a cryptocurrency exchange
Now Singapore is considered one of the best jurisdictions to open companies that are engaged in the field of cryptocurrency. The authorities of this country were among the first to actively respond to the development of this technology. The national regulator of the country has formed a loyal position in relation to the cryptocurrency business.
An exchange must operate on common grounds. There are universal requirements for the distribution of positions. If an exchange is established to deal with tokens that are securities, a license must be obtained and additional requirements have to be met.
It is important to develop risk management mechanisms, establish the most transparent rules for the admission of issuers, keep records and comply with the laws related to the protection of confidential data.
It is beneficial to register a business in the country because taxes are relatively small and the country is politically stable. Investments and assistance for startups are allocated, and starting a business encourages immigration.