How to apply and obtain Cryptocurrency license in Singapore

What is the procedure to obtain a Cryptocurrency license in Singapore?

In Singapore, anyone who wants to operate a cryptocurrency exchange must have a license. The Payment Services Act 2019 regulates cryptocurrencies in Singapore as digital payment tokens (DPTs).

Digital payment token services, which are on the MAS’s list, require one of two types of licenses:

1. Standard payment institution license

  • A standard payment institution license is required if your business plans to offer digital payment token services that do not exceed certain thresholds.
  • When it comes to digital payment token transactions, the specified threshold refers to a monthly average of up to S$3 million over the course of a year.
  • There is also a S$100,000 base capital requirement.

2. Major payment institution license

  • There are no transaction volume or float limits for digital payment token services if you apply for a major payment institution license.
  • This means that you will need a major payment institution license if the average total value of all digital payment token transactions by your company exceeds a monthly threshold of S$3 million for your digital payment token service over a calendar year.
  • There’s also a S$250,000 base capital requirement.

How to apply for digital payment tokens (DPTs) license

How to apply for digital payment tokens (DPTs) license?
  • Application requirements for the standard payment institution license and the major payment institution license, which are collectively referred to as payment services licenses, are extensive.
  • A lengthy and onerous application process for a license to provide digital payment services is understandable given the PSA’s stated goal of helping to safeguard payment service transactions.

Requirements for applying 

  • The company must have at least one owner (can also be a legal person, no nationality restriction or residency restrictions)
  • Any company in Singapore will need at least one director who is a natural person and either lives in Singapore or has a Singapore work permit.
  • Have a Singapore-based company with a registered office or a permanent location in Singapore; and
  • There should be a Singaporean non-executive director and a Singapore Employment Pass-holding executive director on the board.

Documents required 

  • A notarized copy of valid Passport (each of Director and/or Shareholder)
  • Copy of proof of residence address (e.g. utility bill not exceeding 3 months for each director and/or shareholder)
  • Each Director and/or Shareholder must provide a bank reference.
  • Two letters of recommendation from professionals
  • Non-criminal records that have been authenticated by a notary.
  • Anti-Money Laundering (AML) compliance program
  • Financial statement

What is the cost?

Application Fee  

  • For standard: S$1,000
  • For major payment: S$1,500

License Fee

  • For standard: S$5,000
  • For major payment: S$10,000

How much does it cost to get certified in cryptocurrency?

To become a “Certified Cryptocurrency Expert,” or CCE, all you need is $229 and time for 11 hours of online coursework offered by Blockchain Council.

How to need a license to operate a crypto exchange?

Since there are various standards, it ultimately depends on your desired business activity. A crypto license, for instance, is almost certainly necessary if you intend to operate a bitcoin exchange or wallet.

How to register a cryptocurrency company?

  • The risk to personal assets is limited.
  • A legal entity of its own.
  • A trustable entity.
  • Raising the Capital.
  • Long term existence.
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