How to get a cryptocurrency license in Singapore in 2022
Cryptocurrency is legal in Singapore, but ICOs and cryptocurrency exchanges require a license. For professional activities, traders must also get a license. In addition to the securities license, there is also a financial advisor license. It must be taken by companies that advise clients on financial transactions with tokens. Read how to get a cryptocurrency license in Singapore 2022 in this article.
Regulation of the crypto business in Singapore
The central bank MAS is responsible for regulating cryptocurrency and blockchain projects in Singapore. The regulator has a positive attitude toward the cryptocurrency itself, trying to neutralize potentially risky activities related to tokens. Not all of its regulations are enforceable, but all are recommended.
The jurisdiction has no law dedicated to cryptocurrency, but tokens are considered securities here. Hence, all projects, including ICOs and crypto exchanges, must comply with the Securities and Futures Act (SFA).
Crypto exchanges in Singapore
A crypto-exchange must obtain a securities management license. The main requirements are to do the following:
- ensure the safety of users' funds;
- prevent money laundering, terrorist financing;
- monitor transactions and report all suspicious transactions to the regulator;
- notify the regulator of any changes related to operations;
- manage risks effectively;
- maintain user and employee confidentiality.
For a crypto-exchange to avoid being fined for failing to comply with anti-money laundering, anti-terrorism requirements, it must develop a customer identification system.
It used to be risky to launch an ICO in Singapore. The regulator did not support such projects, preventing them. With the popularity of cryptocurrency, the position has changed, but there are still some guidelines for ICO regulation. Before it can be launched, one must:
- meet requirements aimed at preventing fraud, protecting customers' money, even if the tokens are not securities;
- obtain a blockchain project license (capital markets license).
How to get a license
If a company wants to launch a cryptocurrency project, it must develop an administrative structure that will include:
- at least 1 shareholder - can be a legal entity, non-resident;
- at least 1 director - natural person, resident of Singapore;
- registered agent.
It is necessary to provide information about beneficiaries (not publicly available), shareholders and directors references to whom are partially available. Physical office in Singapore is required.
Filing of documents
To obtain a cryptolicense in Singapore 2022, the applicant submits to MAS documents in English, certified by a notary, with an apostille:
- copies of the owners' passports;
- proof of residency;
- certificate of no criminal record;
- a certificate from a Singapore bank showing the existence of an account with no claims;
- a detailed resume signed by the applicant;
- 2 letters of recommendation from persons who are engaged in similar professional activities;
- copies of higher education diplomas of the shareholder, director or executive director (confirming that they can hold the position).
The regulator may also require other documents to be submitted.