Why Singapore for a Crypto Exchange License
Recognized global fintech hub
In 2025, Singapore will still be one of the Asia-Pacific region's top cryptocurrency hubs. The government has created a flourishing ecosystem for authorized cryptocurrency providers with its progressive stance on digital assets and well-established regulatory framework. Singapore, a significant financial hub in Southeast Asia, draws investors with its clear legal framework, sound financial and economic standing, favorable tax treatment relative to other jurisdictions, and encouragement of IT startups and cutting-edge technologies. One of the greatest jurisdictions for business owners wishing to start a cryptocurrency venture is Singapore.
Regulatory clarity under MAS
The Monetary Authority of Singapore (MAS) is actively promoting the country as an international financial center. Important steps on this path were the introduction of transparent regulatory requirements for digital assets, licensing of blockchain projects and the adoption of relevant legislation.
In 2025, MAS has also strengthened its oversight of cryptocurrency companies operating without appropriate Singapore crypto licenses, seeking to ensure an adequate level of investor protection and the stability of the financial system.
Tax system
Cryptocurrency investors and businesses have a very good tax system in Singapore. One of the greatest advantages of obtaining the Crypto Exchange License in Singapore is the tax-friendly regulations of the country. Singapore has no capital gains tax.
MAS Licensing Framework (PSA 2019)
Digital Payment Token (DPT) license overview
A digital payment token is any crypto-secured digital representation of value used or intended to be used as a medium of exchange, i.e. cryptocurrency (e.g. BTC, ETH).
If you plan to provide any of the following services in Singapore, you will need to obtain a cryptocurrency exchange license under the Payment Services Act (PSA):
Domestic money transfer services – transferring funds within Singapore.
Account issuance services – offering or managing payment accounts, such as e-wallets or non-bank credit cards.
Cross-border money transfer services – transferring funds between Singapore and other countries.
Merchant acquisition services – accepting and processing payments on behalf of merchants.
E-money issuance services – issuing electronic money that users can use to pay merchants or send to others.
Digital payment token services – buying or selling digital payment tokens (like cryptocurrencies), or operating a platform for such exchanges in Singapore.
Money-changing services – buying or selling physical foreign currency in Singapore.
Standard Payment Institution (SPI) vs Major Payment Institution (MPI)
Under the PSA, there are three license types, but most businesses apply for one of the following
Standard payment institution licence
Major payment institution licence
Standard payment institution licence
Issued to businesses that do not exceed the following thresholds:
Monthly transaction volume must not exceed S$3 million for any single payment service, excluding e-money account issuance and money-changing services.
Monthly transaction volume must not exceed S$6 million in total if the Singapore’s entity provides two or more payment services (excluding e-money account issuance and money-changing services).
The total amount of outstanding electronic money (e-money) held must not exceed S$5 million on any given day.
Сryptocurrency License Singapore: Eligibility and Requirements
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Singapore-based entity and local office
To apply, the entity must be incorporated in Singapore. A physical local office is typically expected to support operations, governance, and regulatory supervision.
At least one resident director
All directors, shareholders, and officers must satisfy MAS’ “fit and proper” criteria, and the company must have a transparent shareholding structure with identifiable ultimate beneficial owners.
Minimum capital and security deposit
Minimum base capital of S$100,000 for SPI and S$250,000 for MPI
Risk management and cybersecurity protocols
A robust framework is required to address:
Technology risk (especially for DPT services or e-wallets)
Cyber hygiene and incident response planning
General risk management, including fraud, operational, and cybersecurity risks
AML/CFT and KYC compliance
Anti Money Laundering (AML) /CFT policies and procedures in line with MAS requirements and guidelines.
Application Process and Timeline
Submission of MAS documentation (~6 weeks)
SPI and MPI applications are reviewed by MAS on a rolling basis. The review typically takes 4 to 6 months but may be longer if MAS requests additional information.
Delays often occur if the documents are incomplete or unclear, business models raise additional regulatory concerns or applicant provides MAS with a weak AML/CFT regulatory framework
Singapore crypto license cost depends on the chosen licence type (SPI – S$1000 or MPI – 1500$).
Post-license compliance and reporting
To fulfil Singapore crypto license requirements, licensed entities must comply with ongoing duties under the PSA and related laws. Below is a summary of key duties:
AML/CFT Compliance: Follow obligations under laws like the Terrorism (Suppression of Financing) Act, CDSA, and MAS notices (e.g. PSN01–03).
Regulatory Returns: Submit periodic filings in line with PSN04 regarding licensed activities.
Cybersecurity: Maintain proper cyber hygiene as per FSM-N14 to safeguard customer data.
Business Conduct: Ensure clear disclosures, customer fund protection, accurate receipts, timely transfers, and compliance with operational limits and restrictions under PSN07.
Disclosures: Clearly state license scope and issue required notices under PSN08 and notify clients of key changes.
Annual Audit: Appoint an independent auditor yearly to review compliance and financials, and file Form 4 with MAS.
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