Singapore has firmly positioned itself as a global leader in fintech and digital asset innovation, thanks to its forward-thinking regulatory framework, business-friendly tax policies, and strategic location in Asia. For companies aiming to launch or expand their cryptocurrency operations in 2025, obtaining a crypto license in Singapore is not just a legal requirement—it's a strategic advantage.
This comprehensive guide walks you through everything you need to know about Singapore’s crypto licensing system, including the types of licenses, application process, compliance obligations, tax implications, and key benefits of operating under the Monetary Authority of Singapore (MAS) framework.
Understanding Singapore’s Crypto Regulatory Framework
At the heart of Singapore’s digital asset regulation is the Payment Services Act (PSA), which came into full effect in January 2020. The PSA provides a clear legal structure for regulating payment services, including those involving digital payment tokens (DPTs)—commonly known as cryptocurrencies.
The Monetary Authority of Singapore (MAS) oversees all licensing and compliance activities under the PSA. This ensures that crypto businesses operate transparently, protect consumers, and actively prevent money laundering (AML) and terrorist financing (CFT).
👉 Discover how to navigate the MAS licensing process with confidence.
Types of Crypto Licenses in Singapore
Under the PSA, crypto service providers must obtain one of three main license types based on their business model and transaction volume:
1. Standard Payment Institution License (SPI)
Ideal for startups and small-to-medium enterprises (SMEs), this license applies to firms with annual transaction volumes below SGD 3 million across all payment services. It allows companies to offer digital token trading services but comes with certain operational limitations.
2. Major Payment Institution License (MPI)
Designed for larger platforms such as crypto exchanges and high-volume brokers, the MPI has no transaction cap. Holders face stricter capital, risk management, and reporting requirements, reflecting their systemic importance.
3. Money-Changing License
For businesses focused solely on fiat-to-crypto or crypto-to-fiat conversion services, this specialized license may be sufficient—especially if broader payment services are not part of the offering.
Choosing the right license depends on your business scope, projected transaction volume, and long-term growth plans.
Step-by-Step Process to Obtain a Crypto License in Singapore
Securing a crypto license in Singapore involves careful planning and rigorous documentation. Here's a structured approach:
Step 1: Establish a Legal Entity
Before applying for a license, you must register a private limited company with the Accounting and Corporate Regulatory Authority (ACRA). This includes:
- Choosing a unique company name
- Appointing at least one resident director
- Setting up a local registered office address
- Defining shareholding structure
Step 2: Develop a Robust Business Plan
MAS evaluates applications based on the viability and clarity of your business model. Your plan should include:
- Detailed description of services offered
- Target market analysis
- Revenue model
- Technology infrastructure overview
- Risk assessment and mitigation strategies
Step 3: Implement AML/CFT Compliance Framework
All applicants must demonstrate strong anti-money laundering and counter-terrorism financing controls. Key components include:
- Customer Due Diligence (CDD) procedures
- Transaction monitoring systems
- Suspicious activity reporting protocols
- Employee training programs
Step 4: Prepare and Submit Application to MAS
Using MAS’ online portal, submit your complete application package, including:
- Corporate documents (e.g., constitution, board resolutions)
- Financial projections for at least three years
- Organizational chart and resumes of key personnel
- IT and cybersecurity policies
- Proof of office premises and staffing
Step 5: Engage with MAS During Review
The review process typically takes 6 to 8 months. Be prepared to respond to queries, attend interviews, or provide additional documentation. Transparent communication increases approval chances.
Step 6: Maintain Ongoing Compliance
Once licensed, compliance becomes continuous. Requirements include:
- Quarterly and annual financial reporting
- Regular audits by approved firms
- Timely updates to MAS on material changes
- Annual renewal of license with associated fees
Key Compliance Requirements for Crypto Operators
To maintain trust and regulatory standing, licensed entities must adhere to strict standards:
- AML/CFT Policies: Regularly updated to reflect evolving threats.
- Data Protection: Full compliance with the Personal Data Protection Act (PDPA).
- Cybersecurity: Implementation of industry-standard safeguards like cold storage and multi-signature wallets.
- Capital Adequacy: MPI licensees must maintain minimum base capital (e.g., SGD 5 million for DPT services).
- Record Keeping: Detailed logs of all transactions and customer interactions must be retained for at least five years.
Failure to comply can result in penalties, suspension, or revocation of the license.
Frequently Asked Questions (FAQ)
Q: Do I need a physical office in Singapore to get a crypto license?
A: Yes. MAS requires all licensed entities to have a real presence in Singapore, including a registered office and local employees or directors.
Q: Is there a minimum capital requirement for crypto licensing?
A: While there's no upfront authorized capital mandate, SPIs must show working capital of at least SGD 100,000, and MPIs need SGD 5 million in base capital for digital token services.
Q: How long does it take to get approved?
A: The average processing time is 6–8 months, depending on application completeness and business complexity.
Q: Can foreign entrepreneurs apply for a crypto license?
A: Yes, but they must appoint at least one Singapore resident director and establish a local corporate entity.
Q: Are there ongoing fees after getting licensed?
A: Yes. There are annual supervisory fees ranging from SGD 1,000 to SGD 50,000 based on transaction volume and license type.
Q: Does Singapore tax cryptocurrency gains?
A: Business income from regular trading is taxed at the corporate rate (17%). However, capital gains from long-term holdings are not taxed, as Singapore does not impose capital gains tax.
Advantages of Holding a Singapore Crypto License
Operating with an MAS-approved license brings numerous strategic benefits:
✅ Enhanced Credibility & Trust
Being regulated by MAS signals reliability to users, investors, and banking partners.
✅ Access to Banking Services
Licensed firms face fewer hurdles when opening corporate bank accounts—a major challenge for unlicensed crypto businesses globally.
✅ Global Market Expansion
A Singapore license facilitates partnerships with international institutions and entry into Asian markets.
✅ Favorable Tax Environment
With no capital gains tax, low corporate tax rates (17%), and GST exemptions on DPT transactions since 2020, Singapore offers one of the most tax-efficient jurisdictions for crypto firms.
✅ Innovation-Friendly Ecosystem
Singapore actively supports blockchain R&D through grants, incubators, and collaboration with leading financial institutions.
👉 Learn how top-tier platforms leverage regulatory clarity to scale globally.
Taxation for Crypto Companies in Singapore
Singapore adopts a principles-based approach to taxing crypto-related income:
| Income Type | Tax Treatment |
|---|---|
| Trading Profits | Taxable as business income at 17% corporate rate |
| Capital Gains | Not taxable (no capital gains tax) |
| GST on DPT Transactions | Exempt since Jan 1, 2020 |
| Dividends | Tax-free due to single-tier system |
Proper accounting practices—such as recording transaction dates, SGD values, volumes, and costs—are essential for audit readiness.
Companies should work with experienced tax advisors to optimize structuring while remaining compliant with IRAS guidelines.
Final Thoughts: Why 2025 Is the Ideal Time to Enter
As global regulators tighten oversight on digital assets, Singapore continues to balance innovation with investor protection. Its clear licensing pathways, stable legal environment, and pro-business policies make it one of the most attractive jurisdictions for crypto ventures in 2025.
Whether you're launching an exchange, brokerage, or wallet service, securing a MAS license isn't just about compliance—it's about positioning your company as a trusted player in the future of finance.
👉 Start your journey toward a regulated crypto business today.