Crypto license in Singapore: how to get it in 2022

Crypto license in Singapore: how to get it in 2022

Singapore is one of the few jurisdictions with clear rules and regulations on cryptocurrency. This has triggered an influx of foreign businesses that want to engage in crypto-businesses. To prevent money laundering, local companies that engage in cryptocurrency exchanges and ICO launches must obtain a cryptocurrency license in Singapore in 2022. It's not easy: the regulator, the Monetary Authority of Singapore (MAS), carefully screens each applicant: but it is still possible.

Who needs a cryptocurrency license in Singapore

A cryptocurrency license, which is regulated by the Securities and Futures Act (SFA), is required for cryptocompanies that conduct the following activities:

  • launch an ICO project;
  • provide token services (cryptocurrency exchange);
  • sell tokens that are classified as securities (e.g. shares, loans).

Crypto-exchange licensing in Singapore

In order to register a crypto exchange, one must obtain a license, which is regulated by the SFA - CMS (Capital Market Services License). The main requirements for obtaining a license are these:

  • the cryptocurrency company must ensure the safety of users' funds;
  • actively assist in the fight against money laundering and terrorist financing (e.g. by requesting customer identification);
  • monitor transactions;
  • report all suspicious activities.

Licensing an ICO project

It used to be difficult to launch an ICO in Singapore. MAS was against such projects because of the high risk. As their popularity grew, it reconsidered its attitude and published guidelines for regulating ICOs.

MAS allowed new tokens to be launched, but to prevent fraud, a cryptocurrency company must meet SFA requirements and be licensed as a blockchain project. It must do the following:

  • implement a risk control system;
  • present the rules under which the new coins will go public;
  • provide evidence that the company has the technical, financial, human resources to ensure stable operations.

The license a company receives after a thorough review is a signal that MAS has vetted the company and approved its operations.

What licenses are issued by Singapore

To engage in cryptocurrency activities, one can apply for a cryptocurrency license in Singapore 2022:

  • cryptocurrency exchanger;
  • a large payment institution (transactions greater than $3 million per year);
  • standard payment institution permit (up to $3 million per year).

Companies that provide advice on token transactions must obtain a financial advisor license (FAA). In some cases, such companies must also take out a license, which is regulated by the SFA. In addition, traders must obtain a special license.

How to get a cryptocurrency license in Singapore

To obtain a cryptocurrency license, a company must meet the following requirements:

  • Open a company in Singapore;
  • Have a local office, staff, at least 1 Singaporean director;
  • Provide a certificate of no criminal record for the owners of the company;
  • Not to carry out activities that violate the law;
  • Develop and show business plan;
  • Prepare a prospectus with information about the tokens with which the cryptocompany works;
  • Operate in a clean and transparent manner;
  • Report any significant changes in the company's operations, including bankruptcy, suspension of operations;
  • Maintain documentation on all operations;
  • Provide a complete set of documents required by the regulator.

How to get a cryptocurrency license

If you want to open a crypto business in Singapore in 2022, contact IT OFFSHORE specialists.

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